IRAQ: DUTCH TO PROVIDE EXPORT CREDIT INSURANCE

UNCLAS THE HAGUE 003037

SIPDIS

STATE FOR EB/IFD, EUR/UBI, PARIS FOR USOECD

E.O. 12958: N/A
TAGS: EAID ECON EFIN IZ NL PREL EXIM
SUBJECT: IRAQ: DUTCH TO PROVIDE EXPORT CREDIT INSURANCE

REF: A. THE HAGUE 2306

B. STATE 250386

C. ROME 05488


1. The Dutch Ministry of Finance announced on November 27
that it would make available export credit insurance for Iraq
totaling EUR 25 million, valid for 180 days. As reported in
ref A, the package will be managed by private insurer Gerling
NCM. Gerling NCM participated in the December 5 meeting of
export credit agencies in Rome (ref C) and is a signatory to
the agreement with the Trade Bank of Iraq.


2. In a letter to parliament, Minister of Finance Gerrit
Zalm said the facility has the dual purpose of helping Iraq's
reconstruction and creating export opportunities for Dutch
companies. Zalm noted that access to international capital
markets is essential to Iraq's reconstruction. The facility
features a cap of EUR 5 million per transaction, in an effort
to prevent one company from enjoying a disproportionate share.
SOBEL