Supervisor of Banks Yitzhak Tal is likely to direct Bank Hapoalim (TASE: POLI ) to set aside some NIS 250 million for its share in losses incurred by Koor Industries (NYSE: KOR) , unless the bank sells its 21% stake by the end of the first quarter of 2003.

Since Bank Hapoalim intends to sell the shares, it has begun to set aside money to cover the gap between the stock's value in its books, and on the market. But it listed the provision under deferred tax receivables, to evade writing down the holding's value.

The bank claims that its deferred tax accounting for 2001 and 2002 was properly made. But it agreed to follow the directive and stop recording deferred tax on the Koor losses for 2002.

In its board report, the bank stated that it is persisting with efforts to sell its Koor holdings, and will further discuss its deferred tax accounting practices with the Supervisor.

If you liked this article you might like

Nessuah Zannex: Rating cut's main damage is to banks' images to foreigners

Nessuah Zannex: Rating cut's main damage is to banks' images to foreigners

Yes recruitment rate down to 6,000 a month

Yes recruitment rate down to 6,000 a month

Cadence to invest in Israeli startups

Cadence to invest in Israeli startups

Court grants Mentergy 40-day stay of proceedings

Court grants Mentergy 40-day stay of proceedings

Leader & Co sees Discount shifting to profit in Q3

Leader & Co sees Discount shifting to profit in Q3