IRAQI DEBT REDUCTION AND THE SHARM EL-SHEIKH

C O N F I D E N T I A L ABU DHABI 004127 SIPDIS DEPARTMENT FOR NEA AND EB/IFD/OMA E.O. 12958: DECL ON 11/21/14 TAGS: EFIN ECON IZ TC SUBJECT: IRAQI DEBT REDUCTION AND THE SHARM EL-SHEIKH CONFERENCE REF: A) CAIRO 8460, B) STATE 238110 (U) Classified by Ambassador Michele J.. Sison for reasons 1.4 (b & d). ¶1. (U) This is an action request. See paragraph 4. ¶2. (C) Ambassador delivered ref B demarche encouraging the UAE to commit publicly to extending Iraq debt reduction terms at least comparable to those negotiated between the Paris Club and the IIG to MFA U/S Abdullah Rashid Al-Noaimi on November 20, the first day the UAEG reopened after a two-week shutdown, due to the death of Sheikh Zayed. Al- Noaimi said that he did not think that the UAE would do "any less than the Paris Club was doing." He asked that the USG provide the UAEG with draft language that it could use in a public statement and information on debt owed to Paris Club and non-Paris Club creditors and on commitments made by other creditors to reduce debt. He reiterated that he did not think the UAE would do less than other creditors, because the UAE wanted to help the Iraqis. ¶3. (C) Al-Noaimi confirmed that the Iraqis had asked to meet with the UAE Ministry of Finance to talk about debt issues. He also confirmed that the debts were owed to the Emirate of Abu Dhabi, rather than to the Federal Government. ¶4. (C) Action request. The UAEG understands that we are asking them to publicly demonstrate their support for deep debt relief and commit to providing comparable terms to a Paris Club deal, however they are asking for language that they can use in making a public statement. In addition, please provide any information that can be provided on the amount of debts owed to other creditors and any information on how they are treating that debt. End action request. ¶5. (U) Minimize considered. Sison