Israel Raises $8 Billion of Debt Amidst War with Hamas

Israel has raised $8 billion of debt since the start of the war with Hamas, with half of it being dollar-denominated debt in international markets. The war has increased expenses for the military, compensation, and victim support, leading to a budget deficit. Prime Minister Benjamin Netanyahu has pledged financial aid, which is expected to raise the deficit and debt to GDP ratio. Bank of Israel Governor Amir Yaron emphasizes the need to balance economic support with maintaining a sound fiscal position. The war has also cost Israel's economy around $260 million daily, causing a reckoning for Prime Minister Netanyahu due to controversial handouts to ultra-orthodox schools and West Bank settlements. The conflict has inflicted an economic toll of almost $8 billion, causing the government's budget deficit to balloon.