Accountant General: Metro will cost more than we think

Ministry of Finance Accountant General Yali Rothenberg told the Globes Infrastructures of the Future Conference, held in cooperation with Bank Hapoalim, about the difficulties and successes in raising capital for the state, responded to the US nuclear reactor in Israel initiative and set out the challenges facing his successor Michal Abadi-Boiangiu. Rothenberg was speaking in a farewell interview to “Globes” correspondent Oren Dori, before he steps down.

Rothenberg began by surprising the audience with the fact that while Israel raised the most money in its recent bond issue from the US, in second place in investing in Israel was the UK, from which 21% of the capital was raised.

Rothenberg says, “It is impossible to continue telling investors around the world ‘we are at war,’ even if defense spending is high, and it is very important now to reach a lower deficit environment. The government’s decision on a 3.9% deficit is a good decision, because it will allow the country to lower the debt-to-GDP ratio. We look forward to seeing how it will happen.”

Regarding investors in Israel’s bonds, Rothenberg is proud that, “The composition of the book was strong, over 300 investors, $26 billion. This was one of our strongest issues, and it gave a tailwind to many things that happened in the economy. The day after us, commercial companies came out with our pricing as a benchmark.”

We pay higher interest on interest abroad than in Israel. So why raise money?

Rothenberg does not accept the assumption that there is supposedly arbitrage. He says, “There is an impact here from interest rates abroad. In Israel, there is excess demand for the dollar. But there is another reason: to relieve pressure from the local market. 85% of our issues come from the local market, there is an issue every Monday, and there is a swap transaction every Tuesday. Huge funds buy Israeli government bonds. This allows for diversification of the fundraising capacity. The ability to raise money during the war, without putting pressure on the local market, and in a high interest rate environment, is an asset.”

Problems in financing the Metro

How much of this will be invested in infrastructures?

“There is a boom in the world of infrastructure,” declares Rothenberg. “The solution is to diversify the financing channels. We need the right mix of financing from the market, the state, and PPP (public-private partnership) projects. There is a high cost of the lack of infrastructure at all levels. We are dealing a lot with the electricity consumption of AI. Where will it come from? In the center or in the periphery? We are dealing with the development of the grid and transportation. This will converge in the coming years, including the funds that the state will provide from the budget. In addition, the Ministry of Defense will shift IDF bases to the south and that will also need resources.” –

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Rothenberg comments on the plan to lease 4,000 acres in the Negev to the US to build a nuclear power plant, and says, “This is good news, especially in the context of green electricity. This is added to other things that are being done, such as allocating land to Nvidia. In my opinion, it is important that Israel creates these joint ventures.”

Rothenberg warns that the metro has a financing problem: “The working assumption is that it will cost NIS 150 billion. I think it will cost more, but no one knows. Projects need certainty, we commit to contractors and work according to organized plans. The problem is that the cash flows from the sources are uncertain, in scope and timing. Maybe it will close, and maybe not. There are several ways to deal with it, it will be a mix between the state budget, leverage, PPP projects, funds… But there is a problem, and the state will have to deal with it.”

“The low deficit in the war – a fiscal achievement”

After a turbulent five-year term, what achievement are you most proud of?

“To maintain the fiscal side of the country in the most turbulent period that the state has been in,” says Rothenberg. “I had the privilege and honor to serve during the Covid pandemic and the most complex and expensive war, as well as other market factors. There was a crazy increase in interest rates, price increases, extremely serious problems in business cycles spread over long periods, employee problems, and we brought tens of thousands of workers from India.

“We see the markets and the deficit. If we ended 2025 with a deficit of 4.7% in the war, lower than France and the US and even the 5.2% that was originally budgeted – that is a fiscal achievement. It is to the credit of the Ministry of Finance, which knows how to maintain fiscal policy and convince the political echelon. We raised taxes, and we also made a convergence on the spending side.”

Rothenberg also says that he is “proud of technological infrastructures like the Nimbus project, which allows the entire public sector to migrate to the cloud here in Israel. This allows for advanced technological worlds, such as AI. The civil service can be reduced by 20,000 people over time while maintaining the level of service. There is an ROI for technology, and we need to know how to exploit it. You need to connect different elements in the country and not increase expenses too much.”

Abadi-Boiangiu’s challenges

Michal Abadi-Boiangiu will replace you as accountant general. Do you remember your first acquaintance with her in the department?

“I first met her in 2011,” says Rothenberg. “When she became accountant general the first time. I was the chief accountant. Michal is the most deserving woman, she performed her role excellently the first time, and during her second term she will surpass that.

“The State of Israel is a challenging country, and the involvement in the world of security will not decrease. I had a significant challenge as a gatekeeper for the world of security, and this will continue into her term to ensure that we devote resources to security strengthening, but do not crowd out other areas such as infrastructure, and leave a budgetary margin for emergencies. In addition, we signed an agreement with ICL on the Dead Sea. They waive their right of refusal, and the company will have to complete the legislative process and go out to tender.”

And what’s next? Rothenberg emphasizes that he is in a long cooling-off period, which will prevent him from “jumping” straight into the market, and he talks about a crack in the wall of his house that he has needed to renovate for several years. His short-term plan, then, is mainly to do something for his house.

The conference is in collaboration with Bank Hapoalim and is sponsored by Pelephone, Yes, Doral, Netivei Israel National Transport Infrastructure Company, CAF, Bazan Group, Ratio Energies, NTA Metropolitan Mass Transit, Generation Capital, and Moriah Jerusalem Development Corporation, with the participation of Israel Electric Corporation.

Published by Globes, Israel business news – en.globes.co.il – on January 28, 2026.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.