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"I have no intention of deepening any confrontation with the Bank of Israel," Finance Minister Silvan Shalom said yesterday in reference to continuing disagreements between himself and central bank governor David Klein.

"I will take no further steps for the moment nor will I dismiss him," Shalom said.

The minister on Monday accused Klein - without mentioning him by name for using international parties to put pressure on the government. Shalom said yesterday he is willing to keep the peace between them, and work together for the good of the economy.

The minister had understood there was a potential conflict of ideas between the central bank and the treasury even when he took office, but he thought nothing of it. Since then there has been little cooperation between the two, although he believes this is possible, particularly given the state of the economy.

Regarding the vacant post of treasury director general - Avi Ben-Bassat recently resigned - Shalom said he had found a suitable candidate and is currently negotiating with him, but did not yet want to name him. Shalom said the appointment would probably be made shortly.