Mercantile Bank and Interior Ministry Offer Loan Deferral Plan for War-Affected Municipalities

Posted on Jul 1, 2025 by Ifi Reporter - Dan Bielski

 In response to the financial strain faced by local governments following Operation "With a Dog", Mercantile Bank, in cooperation with the Ministry of the Interior, has launched a special loan deferral program for affected municipalities. The initiative allows local authorities to postpone loan repayments by three months, without requiring prior approval from the Ministry of the Interior.

This measure aims to ease the burden on municipalities struggling with post-conflict recovery and essential public services.

Streamlined Support for the Municipal Sector

Mercantile Bank is recognized as a leading financial partner to Israel's public sector, offering tailored financing solutions to local authorities, municipal corporations, city associations, and water and sewage entities. The bank's services for the public sector are managed by a specialized team within its commercial division, ensuring focused and professional support.

interior Ministry Director Praises Quick Action

Ronen Peretz, Director General of the Ministry of the Interior, who spearheaded the initiative, thanked Mercantile Bank for its swift response:

“I thank Mercantile Bank for responding immediately to our request, and hope that additional banks will follow suit and adopt this important outline.”

Barak Nardi, CEO of Mercantile Bank, emphasized the bank's ongoing commitment to Israel’s local authorities:

“As the home bank of the municipal sector, we see local authorities as a key partner in creating community stability. They bear an enormous responsibility — serving as both an anchor for citizens and an engine for daily life. Our initiative with the Interior Ministry reflects our strong commitment to continue supporting municipalities, both in times of routine and uncertainty.”


This program comes at a critical time, as many municipalities face mounting financial challenges due to wartime damage, displacement, and increased demand for social and infrastructure services. The Ministry and Mercantile Bank hope the move sets a precedent for broader support from Israel’s financial sector.

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