Israel launches the "Yitzhak Agreements Fund" to strengthen its economic partnerships in Latin America

SadaNews - Israel and the Inter-American Development Bank (IDB) signed a memorandum of understanding on Monday to establish the "Yitzhak Agreements Fund," marking the first practical step in implementing the initiative launched by Argentine President Javier Milei to enhance political, economic, and technological relations between Israel and Latin American and Caribbean countries.

The signing took place at the Israeli embassy in Washington between Israeli Finance Minister Bezalel Smotrich and the bank's president, Ilan Goldfain, according to a statement from the Israeli Ministry of Finance.

The "Yitzhak Agreements" aim to establish a cooperation framework between Israel and countries in the region in areas such as infrastructure, innovation, investments, and development, similar to the economic and regional agreements that Israel seeks to expand beyond the Middle East.

According to the statement, the fund will provide "a mechanism for financing development projects through mobilizing public and private resources, and will open up opportunities for Israeli companies to access emerging markets in Latin America and the Caribbean."

The Ministry of Finance added that the fund "will rely on Israeli expertise and technologies in the fields of water, energy, agriculture, food security, digital systems, and technology, aiming to provide solutions to the developmental challenges facing countries in the region."

Smotrich stated that the fund represents "a practical embodiment of the political and economic vision" launched by Argentine President Milei, considering that the initiative will contribute to expanding Israeli economic presence and enhancing Israel’s position in international development projects.

For his part, bank president Ilan Goldfain noted that the new partnership opens up economic and investment opportunities for both sides, pointing out that the countries of Latin America and the Caribbean have more than 660 million inhabitants and a combined GDP of over $6.6 trillion.

The launch of the fund comes about two months after Israeli Prime Minister Benjamin Netanyahu and Argentine President Milei signed what was called the "Yitzhak Agreements" during a meeting in Jerusalem in April, described as an initiative aimed at enhancing political, economic, and technological relations between Israel and Latin American countries.

The "Yitzhak Agreements" are an initiative launched by Milei in late 2025, presented in Israel as an extension of the relations that emerged following the "Abraham Accords," focusing on building new cooperation frameworks with Latin American and Caribbean countries in investment, infrastructure, and innovation.

According to previous "Israeli" reports, "the initiative does not only encompass economic aspects but also includes fields of security and technological cooperation, as Israel seeks to expand the range of participating countries to include additional countries in South America, including Paraguay and Panama."

Argentina, under Milei's leadership, has been at the forefront of this path, being one of Israel's most prominent supporters in Latin America. During his recent visit to Israel, Milei announced the transfer of his country's embassy to Jerusalem and reaffirmed his intent to enhance bilateral cooperation in the fields of politics, economy, and technology.