U.S. Treasury Secretary Timothy Geithner and Israeli Treasury director-general Doron Cohen signed an agreement in Washington on Wednesday, Oct 24, that will extend U.S. loan guarantees to Israel to 2016, according to JPost.

The agreement, signed on the sidelines of the U.S.-Israel Joint Economic Development Group (JEDG) forum, gives Israel four more years to use $3.8bn in guarantees left over from the $9bn in guarantees granted in 2003. The guarantees are conditional on Israel meeting deficit and expenditure targets and making economic reforms.

Even if Israel does not take advantage of the loan guarantees, having American backing helps it obtain favorable rates on borrowing abroad.

The guarantees come on top of more than $3bn in military assistance and joint U.S.-Israel missile defense projects.