Stacks of US dollars. The United States is to provide loan guarantees totaling three billion dollars to Israel for 2005-2008, a joint statement said. (AFP photo)

WASHINGTON, April 19 (Xinhuanet) -- The US-Israel Joint Economic Development Group (JEDG) held a meeting on Monday and it was agreed that the United States would provide loan guarantees of 3 billion US dollars to Israel for 2005-2008, a JEDG joint statement said Tuesday.

    "Pursuant to Congressional decision to extend the period of the Loan Guarantee Program for two additional years to 2008, the delegations agreed on a mechanism for implementing that decision,"the statement said.

    In light of this extension, the delegations agreed on "the broad terms" to release the 2005 tranche of 1 billion dollars and the remaining 2 billion dollars will be released based on economicreform and fiscal restraint by Israel, the statement said.

    "The Israeli delegation expressed its deep gratitude for the economic support it has received from the United States," the statement said.

    The Israeli delegation was chaired by Joseph Bachar, director general of the Israeli Ministry of Finance, and the US delegation was led by Anthony Wayne, assistant secretary of state for economic and business affairs, who was joined by Randal Quarles, assistant secretary of treasury for international affairs.

    "The United States underscored the importance to Israel's economy of fiscal discipline, particularly limiting the growth of government expenditures and continued economic reform. The Israelidelegation reaffirmed its commitment to maintaining its reform program in the years ahead," the statement said. Enditem