The public pressure on Bank Leumi (TASE: LUMI) has had told. This evening, the bank announced that it was suspending the debt arrangement with the company owned by Nochi Dankner until an examination of the matter by the Bank of Israel was complete. The decision comes in the wake of a storm of public protest that blew up in the media and on the Facebook social network at the bank's intention of writing off NIS 150 million of debt owed by Danker.
"Bank Leumi believes that the outline of a debt arrangement for Ganden approved by the bank's board of directors several months ago represents the best solution for returning the debt to the bank, given the existing alternative courses of action, from the point of view of the bank, its shareholders, and the public interest," the bank said in its statement. "As is well known, the bank cannot present before the public all the information and considerations that guided it in formulating the outline for an arrangement, which has not yet been signed.
"As a result," the statement continues, "although the bank is attentive to public feelings, the public is not aware of the whole picture. In the light of the announcement that the Supervisor of Banks is examining the matter, the bank has decided to suspend treatment of the outline debt arrangement for the company until the examination is complete, and the bank will act in accordance with its outcome."
Published by Globes [online], Israel business news - www.globes-online.com - on April 17, 2013
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