The United States extended nearly $4 billion in loan guarantees to Israel through 2016.
U.S. Treasury Secretary Timothy Geithner and Israeli Treasury Director-General Doron Cohen signed the agreement on Wednesday in Washington.
The U.S. first approved $9 billion in loan guarantees, which allow Israel to sell bonds internationally with the backing of the United States, during the 2002 recession.
As part of the deal, Israel must also hit certain economic targets regarding the size of budget deficits and levels of government spending.
Israel Gets $4B in U.S. Loan Guarantees