Bonds still going strong, say local leaders
TAMI BICKLEY
Associate Editor
Israel's up-and-coming economy ultimately will diminish the need for Israel Bonds as the country turns to open markets rather than private investors for money, predicts Avi Ben-Bassat, director general of Israel's Finance Ministry.
But local Israel Bonds leaders say there is little, if any chance of that happening.
Robert Mautner, general co-chairman of Israel Bonds for the greater Phoenix area, says there is evidence of a strong future for the organization. Bond sales through May 2000 have already exceeded total bond sales of over $1 million in 1999, he points out.
"We're building a strong history of community involvement and leadership in Phoenix and a lot of local support both from individuals and institutions," he says.
Last year there were more than 400 Israel Bonds investors in Phoenix alone, says Executive Director Tina Sheinbein, who is responsible for Israel Bonds sales in Arizona; New Mexico; El Paso, Texas; and San Diego County.
During the past few years, Phoenix-area bonds leaders have been working to strengthen their relationship with those who invest in smaller denominations, Mautner says. He adds that this is one viable strategy for ensuring the future of Israel Bonds because "fostering that strong bond between U.S. investors and Israel, you basically obtain an investor for life."
Many of the small-denominations investors are young adults, Mautner says. Although young people cannot always invest as much as they'd like to, they foresee the financial benefits and the fact that the bonds help to build up the infrastructure of Israel and the surrounding areas, says Jeannette Flom, co-chairwoman of the organization for the greater Phoenix area, and Mautner's wife.
Recently, a leadership division for the organization formed in order to integrate young professionals in the bonds. Last year, 175 people attended the leadership division's honoree dinner dance, at which $300,000 in bond sales was raised.
"Younger people may not have as much of a dollar investment (as older adults), but as they get older, the stability and consistency with which bonds are paid back (is worthwhile to them)," Flom says.
Bonds are fixed-income investments. Investors receive their money back, plus interest, which is currently at 8 percent.
"There will always be a portion in people's portfolio for fixed-income investments. I just don't see that going away," Mautner says.
The purchasing of Israel Bonds is also a "double mitzvah," Flom says, because "you're supporting Israel and you can turn around and donate that bond to a charitable organization."
Among local organizations that accept bonds are Jewish National Fund, Kivel Campus of Care, Jewish Federation of Greater Phoenix and Hadassah.
Meanwhile, the money is invested in Israel in such projects as the National Water Carrier, which guarantees a safe and continuous water supply. Also, bonds are helping to build a high-speed railway connecting Tel Aviv to Be'ersheba.
And if there is ultimately peace among Israelis, Palestinians, Syrians and Lebanese, the need to build up the infrastructure in Israel and the surrounding areas will be reinvigorated, further proving that Israel Bonds are probably here to stay, asserts Mautner.
Recently, Flom and Mautner were among more than 1,000 people attending the 50th anniversary dinner for Israel Bonds in New York. Former Israeli Prime Minister Shimon Peres spoke at the dinner of what Israel Bonds has done and will continue to do for the development of the country, Flom says.
"We don't have a crystal ball for what's going to happen for the future," she says, "but right now, bond sales are strong, and I think it's a real commentary about how people feel about supporting Israel."
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