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Thursday, March 29, 2007

No-fee Transactions - Perks or a Right

The Mizarchi-Tfachot takeover of Bank Yahav (the government retains partial ownership) had/has some interesting side deals going on, such as an attempt sidestep a tender regarding loans to civil servants.

The Histadrut is running yet another general strike today (of all government services) because the government is refusing to alter the terms of the Bank Yahav tender.

Currently, civil servants don't pay bank fees at Bank Yahav and can get cheap loans. This tender may end those perks.

The costs of these loans and transactions are covered by taxes.

Of course it raises questions. Why should civil servant lose no-fee transactions, as opposed to all Israelis gaining the option of no-fee transactions? Why can't the banks cover operational costs like other banks around the world?

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