IRAQ: DUTCH INTERESTED IN WORKING WITH TRADE BANK

UNCLAS THE HAGUE 002306 SIPDIS PARIS FOR USOECD E.O. 12958 N/A TAGS: EFIN ECON EAID ETRD PREL IZ EXIM SUBJECT: IRAQ: DUTCH INTERESTED IN WORKING WITH TRADE BANK OF IRAQ REF: STATE 250386 ¶1. In the Netherlands, all export credit insurance risks (political and commercial, pre-credit and credit) for all countries under short term whole turnover policies are handled by a private insurer Gerling NCM. The Ministry of Finance has pledged to inform Gerling about the possibilities of working together with the Iraqi Trade Bank. If Gerling NCM is not interested, the Dutch government will give serious consideration to the possibility of providing short-term export credit insurance and working together with the Trade Bank of Iraq itself. ¶2. According to MinFin, the Netherlands is currently considering applications for financing medium term trade transactions on a case by case basis. The Dutch require that deals be structured in such a way that there is sufficient collateral or alternative forms of security. In this respect, The Dutch believe that the establishment of the Iraqi Trade Bank is a very interesting initiative. However, the Netherlands has decided to defer actual provision of cover until the security situation in Iraq improves. ¶3. The Netherlands will be represented at this month's technical meetings at the OECD by Ammarens Bruggenkamp of the Foreign Economic Relations Division of the Ministry of Finance. Sobel