'Win-win for economy and diplomacy': Smotrich tells i24NEWS new 'Isaac Accords' will unlock massive Israeli capital
Speaking in Washington, the Finance Minister outlines a strategic push to leverage Israel’s $2 trillion capital reservoir through a new IDB partnership, strengthening ties with Latin American allies
Speaking to i24NEWS in Washington, Israeli Finance Minister Bezalel Smotrich laid out the practical implications of the "Isaac Accords," a new diplomatic and economic initiative aimed at expanding Israel’s alliances across Latin America.
Smotrich arrived in the US capital on Saturday night for a swift, multi-day marathon of meetings with key Latin American figures. The primary objective of the trip is to formally establish two joint investment funds with the Inter-American Development Bank (IDB) to inject Israeli capital and technology into participating nations, which currently include Argentina, Uruguay, Panama, and Costa Rica.
A central pillar of the initiative, Smotrich told i24NEWS, is redirecting a portion of Israel’s massive institutional capital away from traditional Western hubs and into emerging Latin American markets.
"The savings of Israeli citizens, which are currently managed by the institutional bodies in the State of Israel, are over two trillion dollars," Smotrich said. "Today, institutional bodies in Israel invest here in the United States, invest perhaps in Europe. We now want to open investment channels for the private sector in the State of Israel, in Latin American countries."
To mitigate risk for domestic investors, the government is leaning heavily on the institutional muscle of the IDB. Smotrich explained that the framework will establish two distinct funds: a government-backed vehicle designed to leverage substantial state funds through the bank, and a parallel private fund drawing from institutional and private investors.
"The investment will be through the bank, with all the advantages of the bank," Smotrich said, pointing to the IDB's pristine Triple-A credit rating. "It knows how to build a very, very large portfolio of investments... with an additional layer of government guarantee that we give to Israeli investors to invest in those countries."
When pressed on the rapid diplomatic momentum behind the pact—which currently spans Argentina, Uruguay, Panama, and Costa Rica—Smotrich pointed to a unique convergence of key international figures. He credited IDB President Ilan Goldfajn, a native Israeli, with playing a pivotal role in bridging the bureaucratic divide.
"Ilan has an amazing role in this process, no doubt. Ilan has a very, very warm heart for the State of Israel," Smotrich noted. He further credited US President Donald Trump for "sponsoring this entire process" and Argentine President Javier Milei for providing the original spark that set the initiative in motion.
As an immediate, tangible result of this partnership, Smotrich confirmed that Israel is currently financing a guarantee to launch direct flights between Israel and Argentina, scheduled to begin operations this summer.
Beyond the financial metrics, Smotrich's comments underscored a deeper, defensive reality for Jerusalem. Facing a prolonged military campaign on multiple fronts, the Finance Minister framed the economic pact as a calculated strategy to reward and strengthen Israel's global allies.
"We are actually making a deal that is a win-win, it is good for the Israeli economy, it is good for the Latin American and Caribbean countries, and it is also good for the diplomatic status of the State of Israel... Given the war that we have been waging for the past two and a half years, this is politically and security-wise correct, and economically correct for both countries."