(JERUSALEM) -- As gridlock continues in Washington over the debt crisis, an Israeli newspaper has uncovered a U.S. report that is raising new financial concerns all the way in Jerusalem.
Israel has long relied on U.S. loan guarantees worth billions of dollars to raise money cheaply overseas and grow its economy. But a new internal State Department report is recommending that the $9 billion loan guarantee program be terminated at the end of 2011.
The recommendation came in a report from the State Department's Office of Inspector General which Israel's Haaretz newspaper has obtained. The comptroller's report argues that Israel no longer needs the United States' help since it has become a stable, self-sufficient economy and a new member of the Organisation for Economic Co-operation and Development (OECD).
This is the first time that Israel's economic prowess -- and not its politics -- could change the status of these loan guarantees.
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