The compromise arrived at regarding free loan gemachim which will allow for their continuation and preserve their bank accounts was presented this past Monday to the Knesset Finance Committee by representatives of the Treasury Ministry.
The main points of the compromise: the gemachim will be required to officially declare that they represent bodies with public welfare goals, and to meet all the requirements of recognized nonprofit associations, and thus they will be recognized as not being financial bodies but as public welfare organizations which do not fall under financial agreements with the American government. At first, the gemachim were to be allowed a grace period until the end of June, but in a meeting of the Committee on Monday, it turned out that they need more time. Rabbi Gafni asked the government representatives for an extension until the middle of July to enable them to register themselves as foundations operating for the public welfare free of the threat of having their Israeli bank accounts closed.
He stressed that in any case, an agreement between Israel and the U.S. will only become effective in September so that there should be no impediment for the gemachim to arrange their status vis a vis the registrar of organizations and government authorities by mid-July.