As Ireland and Luxembourg halt approvals for Israeli bonds, Germany may become the new financial hub.

Germany is emerging as a key player in the handling of Israeli bonds after Ireland and Luxembourg ceased their approvals due to human rights concerns. The state-owned Israel Bonds organization raises approximately $2.5 billion annually in EU markets, but requires a member state’s financial authority to approve its bond prospectuses.

With the Central Bank of Ireland transferring its mandate to Luxembourg’s Commission de Surveillance du Secteur Financier, which will also stop approvals, Israel Bonds faces uncertainty. However, Frankfurt, Germany’s financial center, could provide a solution, as it is well-positioned to facilitate access to European investors.