Five Hundred Prutah

FIVE HUNDRED PRUTAH
BANK LEUMI LE-ISRAEL BANK SERIES
Silver/999, 5 grams

On May 1, 1951, the assets of the Anglo Palestine Bank were transferred to Bank Leumi Le-Israel Ltd. This aroused the need to issue a new banknote series. The new notes were identical in design to the Anglo Palestine Bank series, but instead of "Palestine Pound", the denomination became the "Israel Pound". The low Mil denomination was also changed to the "Prutah". A very short two-week period was determined for the exchange of the old banknotes for the new.
In accordance with the Exchange of Banknotes and Compulsory Loans Law, 1952, the currency was exchanged that year. The change-over was accompanied by a 10% compulsory loan on 5, 10 and 50 Pound banknotes and on cash holdings in the banks amounting to 50 Pounds and above. The loans were destined essentially to assist in financing absorption of the mass immigration. Loan Certificates were issued in units of 5, 10, 20, 50, 100, 200 and 500 Israeli Pounds. The loans were collected together with exchange of the banknotes and payers of the loans duly received receipts from the banks. Subsequently, bonds were issued in their names.
Certificates for loans of over 5 Israeli Pounds were issued for periods of 15 years. Loans were not index-linked and bore a 4% annual interest rate. An annual interest pay slip was attached to the Loan Certificate, which could be redeemed each year on July 1. The actual amount of the loan was redeemable in twelve installments from 1956 until 1967. Loan Certificates below 5 Israeli Pounds did not bear interest and could be used by the owner in payment of government or municipal taxes.

Details taken from "Banknotes and Coins of Israel 1927-2006", published by the Bank of Israel (edited by Yigal Arkin), by courtesy, the Bank of Israel.

Israel Coins and Medals Corp. is proud to introduce this unique series, which is to be the third of several series representing the historical banknotes once in circulation in the State of Israel. This interesting series consists of flexible, paper-thin 5 gram pure silver sheets, produced by an innovative manufacturing technique. 

Limited Edition - 1,800 only