STATE OF ISRAEL - Israelbondsintl

1 STATE OF ISRAELThis description of the STATE of ISRAEL is dated as of June 30, 2014 and appears as Exhibit D to the STATE of ISRAEL sAnnual Report on Form 18-K to the Securities and Exchange Commission for the fiscal year ended December 31, delivery of this document at any time does not imply that the information is correct as of anytime subsequent to its date. This document (other than as part of a prospectus contained in aregistration statement filed under the Securities Act of 1933) does not constitute an offer to sell orthe solicitation of an offer to buy any securities of or guaranteed by OF CONTENTSPageMap of INFORMATION AND RECENT of Payments and Foreign and Monetary Guarantee OF of Government and Political Judicial in International Organizations and International Economic Domestic and Sector and.

2 Labor and of the STATE in the Electric Corporation Oriented Postal Company Railways and OF PAYMENTS AND FOREIGN of Laundering Exchange Controls and International Exchange FINANCIAL of Budget on Expenditure and Deficit and Tax Budget Proposal for 2013 Security Government of Government Government Public Public External and Hedging in Credit OF TABLESPageTable No. 1 Dollar Exchange No. 2 Revised Growth Indicators 2006 No. 3 Selected Economic No. 4 Distribution of Knesset Seats by No.

3 5 Main Economic No. 6 Resources and Use of No. 7 Net Domestic Product Percentage Change by No. 8 Composition and Growth of Business Sector No. 9 Manufacturing Index by No. 10 Industrial Production No. 11 Tourist Arrivals by Area of Origin and No. 12 Selected Price No. 13 Principal Labor Force No. 14 Unemployment Data by Demographic No. 15 Employment No. 16 Structure of Employment in No. 17 Selected STATE -Owned No. 18 Balance of No. 19 Exports of Goods by Major No. 20 Imports of Goods by Major No. 21 Exports of Goods by No. 22 Imports of Goods by No.

4 23 Merchandise Trade No. 24 External Assets and No. 25 Foreign Currency Reserves at the Bank of No. 26 Nonresident Investment in ISRAEL and Resident Investment No. 27 Average Exchange No. 28 Selected Interest No. 29 Monetary No. 30 Assets, Liabilities and Equity Capital of the Five Major Banking No. 31 The Budget Deficit and Its No. 32 General Government No. 33 Government of ISRAEL Statement of Net No. 34 Government & Public No. 35 Net Public No. 36 Ratio of Net Public Debt to No. 37 Central Government No. 38 Debt-to-GDP No. 39 Duration of Debt Average Time to No.

5 40 Composition of External Government No. 41 Annual Local Currency Government Debt No. 42 Net External No. 43 Public Sector External No. 44 Total Funds Raised by ISRAEL No. 45 Foreign and Local Currency No. 46 Outstanding Government External No. 47 Forward Amortization of Government External Debt Principal No. 48 Forward Amortization of Government External Debt Interest No. 49 Foreign Currency Debt of the Government of No. 50 Outstanding Public Sector External No. 51 Forward Amortization of Public and Private Sector External Debt No.

6 52 Forward Amortization of Public and Private Sector External Debt No. 53 STATE AND SUPPLEMENTARY INFORMATIONPageForeign Currency Debt of the Government of from the Government of the Federal Republic of from Israeli and Non-Israeli Capital Markets of ISRAEL Local Currency Direct Debt of the Government of Local Currency Direct Debt of the Government of Loans of the Government of of the Government s Foreign Currency Debt by of ISRAEL *These areas are subject to agreements between the STATE of ISRAEL (the STATE or ISRAEL )

7 And thePalestinian Authority (see STATE of ISRAEL International Relations, below).D-1 Currency ProtocolExcept as otherwise expressed herein, all amounts in this annual report ( Report ) are expressed in NewIsraeli Shekels ( NIS or shekel ) or in dollars ( $, dollars, or USD ). Any amount stated indollars in this Report as of a stated date or for a stated period that was converted from NIS into dollars, waseither converted at the representative foreign exchange rate for dollars on such date, or at the average of therepresentative foreign exchange rates for dollars for each day during such period, as published by the Bank ofIsrael.

8 The Bank of ISRAEL representative rates are indicative exchange rates of foreign currencies versus theshekel and are based on the average buying and selling prices published by banks around the time that therepresentative rate is set. The representative NIS/USD exchange rates as of the following dates and for thefollowing periods were:Table No. 1 Dollar Exchange Rates20092010201120122013 December :Bank of December 31, 2013, the Bank of ISRAEL representative foreign exchange rate for USD was NIS USD The average exchange rate for 2013 was NIS per USD October 2000, all restrictions on foreign currency derivative transactions with non-residents wereabolished.

9 For further discussion on the convertibility of the NIS to USD (see Balance of Payments andForeign Trade, below).In June 2008, the NIS became one of the seventeen currencies eligible for payment settlements throughthe Continuous Linked Settlement ( CLS ) Bank system ( CLS Bank ). CLS eligibility eliminates part ofthe risk associated with foreign exchange transactions across time zones, enhancing the NIS s systemicstability. Currently, over half of all CLS Bank members are able to settle payments in NIS in certain tables in this Report may differ from the sum of the individual items in such tables dueto rounding.

10 Unless otherwise specified, amounts in NIS or USD are given in current prices withoutadjustment for YearThe fiscal year of the Government of ISRAEL (the Government ) ends on December 31. Thetwelve-month period which ended on December 31, 2013 is referred to in this Report as 2013, andother years are referred to in a similar STATEMENTSF orward-looking statements are statements that are not historical facts, including statements about theGovernment s beliefs and expectations.