It is understood that Leo Noe’s British Israel Investments Ltd has given a NIS 40 million loan to a company controlled by businessman Gad Zeevi.

Mr Zeevi, a partner with British Israel in Haifa’s Grand Canyon shopping mall, has reportedly been forced to mortgage his entire 29.5 per cent holding in the mall as a guarantee against repaying the loan.

The interest of NIS 4 million on the loan will be repayable with the principal after six months — representing an annual interest of around 21 per cent.

Apparently, Mr Zeevi plans to repay the loan in a lump sum on August 9, 2009..