“Moody's announcement is an opportunity to rethink our path,” says outgoing chairperson of Securities Authority

Israel Securities Authority Chairperson Anat Guetta became the latest senior economic official to vacate her role on Sunday. Her replacement has yet to have been selected, as is the case with several other senior positions.

Finance Minister Bezalel Smotrich is expected to decide soon on the appointment of a new chairman for the Securities Authority. Guetta's official term ended already in January of this year but it was extended twice with her consent in order to allow a replacement to be found in an orderly manner after the Minister of Finance acclimatizes in his office. In order to fill the position, the approval of the Gilor Committee headed by retired judge Bilha Gilor is necessary. This means that this is a process that will take at least a month and maybe even longer.

Anat Guetta.

"I am ending my role during a period of concern for the Israeli economy, which is facing considerable risks. The global markets are experiencing signs of recession and high uncertainty, and the Israeli economy, which has stood firm in the last decade as an island of certainty in the sea of the global economy, no longer provides the same sense of security for local and foreign investors."

According to her, "major analysts of investment bodies and foreign banks have expressed concern in recent weeks about the effect of political moves on the stability of the economy, and the lowering of Israel's credit rating forecast from positive to stable by the rating agency Moody's is a warning sign that should be taken seriously."

She added that "ignoring possible risks to the stability of the corporate governance of the State of Israel undermines confidence in the Israeli market among investors and creates a perception of risk that reduces the viability of investing in Israel at this time. The decision makers in the government must take bold actions aimed at restoring confidence and stability to the Israeli economy. Moody's announcement is not only a warning sign, but also an opportunity to rethink our path, and take investors' concerns seriously."

Several additional senior economic positions will also soon become vacant. On June 17, 2023, the Director of the Tax Authority, Eran Yaacov, will retire. Yaacov's term ended in mid-March and Finance Minister Smotrich extended his term by three months. In order to fill the position, it is necessary to establish a search committee, which has not yet been established.

The position of Commissioner of the Capital Market, Insurance and Savings Authority in the Ministry of Finance has been vacant for about six months following the retirement of the then Commissioner Moshe Bareket. Amit Gal, who served as deputy commissioner, was appointed as acting commissioner of the authority. According to estimates, an external candidate will be appointed to the position. The search committee that will discuss the appointment of the Director of the Tax Authority will also discuss the appointment of the Commissioner of the Capital Market Authority.

The Chief Economist at the Ministry of Finance, Shira Greenberg, is expected to retire at the end of May 2023. According to estimates, this position will also be filled by an external candidate as of June 1, 2023. Meanwhile, Bank of Israel Governor Prof. Amir Yaron will finish his five-year term at the end of the year. Prime Minister Benjamin Netanyahu and Smotrich will jointly determine the appointment of the next governor. Among the names mentioned for the position is Prof. Avi Simhon, chairman of the National Society and Economy Council, who is considered close to Netanyahu.