Israel-based publication www.globes-online.com recently reported that a committee which had been appointed for the purpose of studying “credit and growth in the diamond sector”  submitted its report to Israel’s  Minister of Economy and Industry, Eli Cohen.

Noting that about 70% of diamond businesses with turnovers of up to US$ 3 million were suffering from a credit crunch, the committee recommended  “a special aid track” for diamond traders, within the fund being made available  to small and medium-sized businesses.

The committee has recommended that “NIS 1 billion in credit, financing for overseas conferences aimed at encouraging buyers to come to Israel, and state aid in founding a polishing facility for large stones” be made available to  the diamond fraternity, globes-online.com reported.

The committee was set up upon the request of the diamond industry of Israel, who, the publication said “complained that their ability to compete globally with countries such as India and Qatar had declined in recent years”.

 In the course of its six-month deliberations the committee held discussions with several representatives of the Israeli government and concerned officials.   

The Committee was chaired by Naama Kaufman-Fass, Vice Director General at the Ministry of Economy and Industry. She is quoted by globes-online.com as saying: “The committee identified the main barriers for small businesses in the sector, and recommended a comprehensive response to their needs in credit and promotion of innovation."  

The publication also quoted Minister of Economy and Industry Eli Cohen as saying: "Implementation of the committee's recommendations, together with other measures, is needed, given the crisis in the sector created by changes in the global diamond industry in recent years. These measures are designed to provide new tools and address the diamond traders' challenges, while easing the regulatory burden. This will lead to growth in production and exports."