British Mandate: A Survey of Palestine: Volume I - Page 351

CHAPTER IX.

Barclays Bank (D.O. & 0.) Ottoman Bank Ltd. Anglo-Palestine Bank Lc;J. Prudential Assurance Guardian Assurance Palestine Corporation

Palestine Economic Corporation of New York

Total


£P. 50.000 25,000 25,000 150,000 25,000 35,000

25,000 335,000

The balance of £P.65,000 was reserved for the Arab Bank or other Arab institutions and was not taken up.

96. In audition to the subscribed capital of £P .335 ,000 the Government of Palestine advanced £P.150,000 to the company as a guarantee fund for the issue of debentures. None have as yet been issued. On this £P.150,000 Government is to receive a varying rate of interest dependent upon the profits of the company after dividends have been paid to the shareholders at the rate of 6%. At the end of the 25th year this advance us to be converted into ordinary share capital.

97. Government has the right to nominate the chairman of the Board of Directors (now Lord Greenwood) and also to appoint a representative (at present the Director of Land Registration) on a local committee which advises the General Manager; the appointment of the General Manager is subject to Government approval.

98. Loans issued by the company at the rate of 8% per annum amounted to £P.140,000 in 1936, £P.218,000 in 1937, and £P.64,000 in 1938; after July, 1938, the issue of loans virtually ceased because of the disturbed state of the country. The total of loans issued was 670, aggregating £P.425,000, entailing the mortgaging to the company of some 37,000 dunums valued at £P.l,400,000 at the end of 1941. About half the loans were for sums under £P.500, one quarter for sums from £P.500-1000, and a quarter for sums from £P .1000-2000. Most of these loans were made to citrus growers for the installation of irrigation plant, the erection of packing sheds and the development or improvement of the groves and were divided approximately equally between Arabs and Jews. Except by resolution of the directors loans to individuals may not exceed £P.2,000, and those to groups such as cooperative societies or corporate bodies may not exceed £P .5 ,000. The longest term for which the company may lend is 20 years. The resumption of loans during the war was prevented by the lack of shipping facilities for export of the fruit.

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