New York City comptroller reverses pledge to purchase Israeli government bonds
Mark Levine, a vocal supporter of Israel, cites financial risks and weakening credit conditions in decision to suspend investment plans
NEW YORK CITY (MNTV) – New York City Comptroller Mark Levine has abandoned plans to purchase Israeli government bonds, reversing a campaign commitment amid growing concerns over Israel’s financial stability and the economic impact of its wars in the Middle East.
Levine, a Democrat and staunch supporter of Israel, told The New York Times on Wednesday that his office would not proceed with the investments following a financial review.
He insisted the decision was driven by economic considerations rather than political pressure.
“I always said this would be based on financial considerations only, not politics — that’s still my position,” Levine said.
During his election campaign last year, Levine pledged to restore the city’s investments in Israeli bonds, which his predecessor, Brad Lander, had halted in 2023.
He continued advocating for the purchases after assuming office, publicly defending the proposal as recently as April.
However, Levine said worsening financial conditions and technical obstacles had made the investments impractical.
Israel’s government bonds have come under increasing pressure as its genocide in Gaza and assaults in Iran strain the country’s economy and undermine investor confidence.
Fitch Ratings revised Israel’s credit outlook to negative in April 2024, while Moody’s and S&P Global downgraded its sovereign debt ratings during the Gaza genocide.
Although Moody’s and S&P have subsequently returned their outlooks to stable, Israel’s credit ratings remain below their pre-war levels, according to Levine’s office.
The bonds have also become less attractive financially, with two- and three-year securities offering yields slightly above 5%, below the recent investment returns generated by New York City’s pension funds.
Levine also acknowledged that his original commitment to purchasing Israeli bonds was partly motivated by opposition to the Boycott, Divestment and Sanctions (BDS) movement, which advocates economic pressure on Israel over its treatment of Palestinians.
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