Stanley Fischer. Bank of Israel governor until 2015
Photo: Gil Yohanan
Fischer to serve 2nd term as Bank of Israel governor
'There is no disagreement in the whole world that he does an excellent work,' prime minister says in press conference announcing his support of central bank head. 'Now he just has to say yes'
Stanley Fischer will likely serve as the Bank of Israel's governor for another five years. Prime Minister Benjamin Netanyahu announced Wednesday in a press conference at the Knesset that he will recommend that Finance Minister Yuval Steinitz appoint Fischer for another term as governor.
As expected, Fischer agreed to the offer after the new Bank of Israel law was passed Tuesday in the Knesset. Fischer is slated to receive the letter of appointment from President Shimon Peres soon.
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Fischer's current term as governor is slated to end on April 30. He will be instated to his second term on May 1.
"This is a man on whom there is no disagreement in the whole world that he does excellent work," said the prime minister, noting that the Fischer's recommendation for another term was mutually made between him and the finance minister. "Now all that's left is for you to say yes," Netanyahu addressed Fischer, who was sitting next to him on the stage.
"I thank you for the recommendation, and I will continue to fill my position in accordance with the challenges presented by the new Bank of Israel law," responded Fischer.
"When Netanyahu offered me the position, I couldn't have imagined what happened in the first run. But it was a challenging period, the height of which was the financial crisis, which we handled well and also came out of."
Hints dropped recently by the governor to the effect that he would not agree to serve another five years without a new Bank of Israel law spurred the cabinet to submit the bill for the Knesset's approval before leaving for Passover recess.
The new law, which replaces the 56-year-old Bank of Israel Act, cements the Bank's independence and instates a regular monetary committee to decide on interest rates and makes provisions regarding Bank employees' salaries, thus comparing them to other public sector employees.
There was some uncertainty in recent months whether Fischer would continue on for another term, and not just because of the Bank of Israel law. Fischer's wife and family were pressuring him not to act another term, but the governor insisted that he would remain in the position of the Bank of Israel law were passed so that he could oversee putting the new structure of the bank into action, as detailed in the law.
In the past, Fischer implied that the decision to serve another term would be easier if it were shortened to a period of two years. However, doubts regarding the length of Fischer's term were also dissipated when he accepted the appointment as he assured in his speech that he would serve the full five year term.
About two years ago, Fischer threatened to resign over the crisis between the Bank of Israel and the Finance Ministry around the signing of a new salary agreement. Prolonged and exhaustive negotiations ensued between the two bodies regarding whether the Finance Ministry would continue its oversight over Bank of Israel salaries. Then Prime Minister Ehud Olmert stepped in and convinced Fischer to withdraw his resignation threat.
'Fischer among best in world'
Knesset Finance Committee Chairman MK Moshe Gafni praised Fischer's decision to stay on for another term. Gafni said, "The governor is a professional of the first degree and a leader in the entire world."
"Stanley Fischer is a real asset to the State of Israel. The Israeli economy owes him a lot for its stability throughout the global financial crisis over the past year. There is no doubt that his staying on for another term will contribute significantly to the Israeli economy and its standing in the world," said Gafni.
Defense Minister Ehud Barak also welcomed Fischer's acceptance of another term as bank governor.
"Stanley Fischer is considered one of the most outstanding and professional governors that the Israeli economy has known since the establishment of the state. Governor Fischer successfully handled the financial crisis in a manner that deserves respect. He was among those who helped the Israeli economy get through it strong and secure," said Barak.
