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