According to Wikipedia dedicated article, Kibbutz crisis was:
an acute economic crisis many of the kibbutzim in Israel experienced during the 1980s and that many still experience today
However, this kind of crisis was far from being new:
[...] It was preceded by many crises, which were followed by many debts settlements as well. The first debt settlement took place in 1924 and since then, debt settlements have been carried out about once every decade and a half
Causes seems to be related to both banks and kibbutz members behavior and include investments made without economic justification, speculative investments, reliance on the government to cover the kibbutzim debt and depriving debt calculation.
Question: Why did Israel state chose to support kibbutzim using the banks and not subsidies or other types of support that do not involve standard financing?
It is almost a century since the first Kibbutz crisis (1924) so there was (or is, it is not clear for me if Kibbutz debts were irreversibly settled) a lot of time to understand that financial support was not provided in a sustainable way.