OPIC SOVEREIGN DEBT FACILITY FOR JORDAN

UNCLAS AMMAN 003988 SIPDIS OPIC FOR WILLIAMS/KIWAN TREASURY FOR OASIA -- ABIGAIL DEMOPULOS E.O. 12958: N/A TAGS: EFIN EINV JO SUBJECT: OPIC SOVEREIGN DEBT FACILITY FOR JORDAN REF: AMMAN 332 ¶1. (SBU) Citibank Jordan General Manager Suhair Al-Ali told ECON/C July 1 that Citigroup had scheduled a July 13 presentation to Prime Minister Ali Abul Ragheb on the proposed use in Jordan of OPIC's new "Non-Honoring of Sovereign Guarantee Insurance" facility. She hoped that an OPIC official would be available to participate in the presentation and to answer questions from the PM, Finance Minister Marto, Planning Minister Awadallah and others about how it would work. ¶2. (SBU) Al-Ali also said she would forward to the Embassy a copy of a draft agreement between Citigroup and Jordan covering the use of the facility. Embassy will forward this to Washington by email when received. Al- Ali said that the GOJ was keen to take advantage of the program and that the Finance Minister's earlier objections to taking on new sovereign debt had been resolved. She thought one of the first borrowings would be for the Bechtel-managed Aqaba Development Corporation, which is responsible for the strategic development of Aqaba as an industrial, tourism and transportation hub on the Red Sea. ¶3. (SBU) Comment: Following the Iraq war, recent progress on Israeli-Palestinian track, and the success of the World Economic Forum meetings in Jordan, there appears to be a resurgence of interest in investing in Jordan. Al-Ali said she wanted to assure OPIC that Citigroup is very serious about moving forward with this initiative. She felt that OPIC participation in the presentation would be very helpful. Post is highly supportive of OPIC's engagement in Jordan and would be pleased to support an OPIC visitor for this purpose. ¶4. (SBU) Embassy point of contact is Econoff Greg Garramone: GarramoneGG@state.gov, 962-6-592-0101 x 2557. GNEHM