Netanyahu woos Wall Street, vows privatization

[Reuter / Marjorie Olster]

NEW YORK, July 12 (Reuter) - Israeli Prime Minister Benjamin
Netanyahu, hoping to woo Wall Street, declared his intention to
privatise nearly all his country's state-owned enterprises.
Speaking to 200 prominent figures of the U.S. financial
community at the New York Stock Exchange on Thursday, the newly
elected premier also tried to allay U.S. investors' fears his
rightwing government would upset the fragile Mideast peace
process.
``I'm committed to privatise just about all of the government
firms and many of the government services and we are eagerly
seeking out experiences from other countries,'' Netanyahu said.
``We will choose the sequence and act on it. We intend to do
it throughout the economy, graded into the completion of this
term of office,'' he added.
Netanyahu was on his first visit to the United States since
his election in May. He will spend Thursday, Friday and Saturday
in New York.
The prime minister provided few other details of his
government's privatisation plans.
He urged the business leaders get in on the ``ground floor''
of what he envisions as Israel's growing prosperity.
``I'd like you to come to Israel because it's good for
business,'' he said. ``I'd like you to come to Israel because I
think you'll make money in Israel.''
When Netanyahu, head of the rightwing Likud party, was
elected, some U.S. investors and market analysts had predicted
it would dampen foreign investment in Israel because of the
prospect of a disruption in Middle East peace talks.
The benchmark index of the Tel Aviv stock market has tumbled
12.5 percent since the election and Israeli analysts hold out
little hope for a recovery in the near term, saying the market
has been hurt by uncertainty over the course of the Mideast
peace process.
Ron Lubasch, manager of Lehman Brothers' Israel office, said
many foreign financial investors reduced their Israeli holdings
before the elections and are now in a wait-and-see pattern.
``Inflation, interest rates, a low dollar, a high deficit in
the budget and current account, all are affecting the market,''
said Eli Nahum, head of trading at Zannex Securities in Israel.
``There is a lot of skepticism concerning any economic measures
taken by the new government.''
At his Wall Street appearance, Netanyahu reassured business
leaders he would pursue his own vision of peace.
``Since the assumption of office, I have received
communications from more than 10 Arab countries. I've received
communications from the great majority of the countries of the
Arab League,'' he said.
Some of his audience members said they were impressed by
Netanyahu's plans.
Felix Rohatyn, a managing director at Lazard, Freres and
Co., said he thought Netanyahu had ``convinced a lot of people.''
Rohatyn, once touted as a possible presidential nominee to the
U.S. Federal Reserve board, said, ``I think he makes a very
powerful case.''
Lester Pollack, also a managing director at Lazard Freres,
said he thought Netanyahu had succeeded in allaying some
concerns investors on Thursday as well as in earlier statements
in Washington.
``I think he demonstrated economic development for Israel and
the region is key. It underpins stability and peace,'' he said.
--
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