JERUSALEM, Oct 15 (Reuters) - Israel's war with Hamas in Gaza will have an impact on the budget but it will be manageable since the country entered the conflict with a very solid fiscal position, Bank of Israel Governor Amir Yaron said on Sunday.

In a speech to a G30 panel, Yaron said it was difficult at this time to put exact numbers on how the budget may be affected by the conflict.

"But there is no doubt this war will have fiscal implications that will depend on its intensity and duration," he said in published remarks. "However, with the appropriate budget adjustments, ones that I believe are manageable, there should be no major changes to our fundamental fiscal position."

He noted that Israel entered this war with a very solid fiscal position - a debt-to-GDP ratio just below 60% and a budget deficit of around 1.5% of GDP with similar projections for 2024.

"Past experience has demonstrated the resilience of Israel's public finances to military conflicts," Yaron said, adding that in previous conflicts over the last 30 years, the government was able to absorb the cost of additional military and civilian support within responsible fiscal frameworks and "returning rapidly to a declining debt-to-GDP ratio on the back of strong rebounds of the domestic economy."

Israel has vowed to annihilate the militant group Hamas in retaliation for a rampage by its fighters in Israeli towns eight days ago in which its militants shot men, women and children and seized hostages in the worst attack on civilians in the country's history.

Yaron said there will be an effect on real economic activity but that Israel's economy "is strong and stable (and) has robust and healthy economic foundations."

"The Israeli economy has known how to function and to recover from difficult periods in the past and to return to prosperity rapidly," he said, pointing to the Covid pandemic.

The central bank, Yaron noted, was using a variety of policy tools to assure the continuing functioning of the markets.

The Bank of Israel said last week it will

sell up to $30 billion of foreign currency

in the open market, the central bank's first ever sale of foreign exchange, to maintain the shekel's stability during the war.

It also will provide liquidity through swap mechanisms in the market of up to $15 billion.

Yaron said Israel's forex reserves of some $200 billion "provides us with ample capacity to support the Israeli economy."

He added that the biggest risk to inflation in the past nine months and now even more so is the depreciation of the shekel. The inflation rate stood at 4.1% in August and it was too soon to tell how supply and demand dislocations will impact inflation.

Yaron also called on governments to combat financial transactions by terror groups. "Stop the money routes and sources of countries and organizations that sponsor terrorism, and act decisively to eliminate the financial flows that are harmful to ourselves and to our global system," he said.

(Reporting by Steven Scheer and Ari Rabinovitch, Editing by Louise Heavens and Giles Elgood)