JERUSALEM, June 21 (Reuters) - Israel's Finance Ministry said it will provide $1 billion in insurance for exporters hit hard by the recession.
The ministry said it will immediately provide the insurance through Harel Insurance Investments in the form of 4 billion shekels ($1.01 billion) in state guarantees. It is also in talks with Clal Insurance and Investments.
The programme will end at the end of 2010.
"Support for the exports industry is the pillar of the ministry's economic plan during the current crisis," Finance Minister Yuval Steinitz said in a statement.
"The plan will allow exporters to receive broad insurance and encourage exports to markets around the world."
Exports comprise nearly half of Israel's economic activity.
Israel's economy contracted by an annualised 3.9 percent in the first quarter, largely due to a 37 percent drop in exports. (Reporting by Steven Scheer; Editing by Rupert Winchester)