Treasury to gradually lift ceiling on institutionals' overseas investment

The limit will be raised from 5% to 20% right away, and later removed altogether
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A Finance Ministry document reveals that a key agreement to remove the limitations on overseas investments by institutional investors will be implemented in stages.

The treasury will immediately lift the ceiling on investment abroad by pension funds, mutuals and insurance companies from 5% to 20%.

At a later stage the ceiling will be rescinded altogether, according to the minutes of a weekend meeting between Bank of Israel governor David Klein and Finance Ministry director-general Ohad Marani, revealed in TheMarker for the first time.

The document further sets out the boundaries of the mobility band governing the foreign currency market. The band's floor has been set at NIS 4.1 per basket of currencies unit. Its ceiling remains unchanged, the document states.

The proposed amendments will be brought to parliament for voting on Monday.