Holocaust victims to get less than expected from Bank Leumi

Bank Leumi will pay back Holocaust victims or their heirs an amount between NIS 35 million and NIS 300 million, far less than originally thought, according to the final version of the draft report of the Knesset committee that probed restitution claims from Israeli banks. It appears that the panel bowed to many of the bank's demands.

The report's final draft was handed to Bank Leumi a few days ago. According to figures obtained by Haaretz, the Bar-Lev accounting firm, which conducted the probe on behalf of the committee, found that about 2,500 accounts with assets of NIS 700 million had been deposited by Holocaust victims in Leumi. The bank, however, will be instructed to pay far less than that amount, since the committee to make two major changes as a result of being pressured by the banks.

The first change adopted a year ago was that the treasury would have to pay for the period when the money was held by the Custodian General. It is unclear, however, whether it will indeed do so. Finance Minister Benjamin Netnayahu met with panel head Colette Avital yesterday, and told her he would have to study the report first.

The second change was to adjust the assessment method for accounts that have no heirs, which would drastically reduce the amount to be paid to a maximum of NIS 35 million.