Identifier
Created
Classification
Origin
04AMMAN1453
2004-02-25 17:03:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Amman
Cable title:  

LETTERS FROM THE GOVERNMENT OF JORDAN

Tags:  EFIN PREL PINR JO UNSC IAZ 
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This record is a partial extract of the original cable. The full text of the original cable is not available.

251703Z Feb 04
UNCLAS SECTION 01 OF 02 AMMAN 001453 

SIPDIS

SENSITIVE

TREASURY FOR QUARLES, ZARATE, MILLS, MCDONALD

E.O. 12958: N/A
TAGS: EFIN PREL PINR JO UNSC IAZ
SUBJECT: LETTERS FROM THE GOVERNMENT OF JORDAN


UNCLAS SECTION 01 OF 02 AMMAN 001453

SIPDIS

SENSITIVE

TREASURY FOR QUARLES, ZARATE, MILLS, MCDONALD

E.O. 12958: N/A
TAGS: EFIN PREL PINR JO UNSC IAZ
SUBJECT: LETTERS FROM THE GOVERNMENT OF JORDAN



1. The Embassy has received the following three letters
regarding the Arab Bank from the GOJ.


2. Letter from Governor and Chairman of the Board of the
Central Bank of Jordan Umayya Toukan to Ambassador Gnehm:

Your Excellency,

I am writing to Your Excellency with regard to the interest
of the Arab Bank to reopen its branches in Iraq. As you
might be aware, Your Excellency, the Arab Bank is the highest
rated bank in Jordan in all aspects of its operations. Its
management is highly regarded in Jordan due to its good
governance standards and integrity. Furthermore, I had the
opportunity to visit the OCC in New York who confirmed also
that the Arab Bank in New York is highly regarded by the OCC.

I am enclosing to Your Excellency copies of a letter by H.E.
the Prime Minister sent to H.E. Ambassador Paul Bremer as
well as a letter to Dr. Shabibi, the governor of the Central
Bank in Iraq on this issue. You might also recall that the
issue was also raised during the visit of H.E. the
Undersecretary of the Treasury for International Affairs Mr.
John Taylor.

I hope Your Excellency will use your good offices to support
our request regarding the presence of Arab Bank in Iraq.

Please accept, Your Excellency, the assurances of our highest
consideration.

Yours Sincerely,

/S/

Umayya Toukan
Governor and Chairman of the Board
Amman, February 25, 2004


3. Letter from Prime Minister Faisal El Fayez to
Administrator Bremer:

Dear Sir,

I am taking the liberty of sending you a copy of a
correspondence to Dr. Sinan Shabibi, Governor of the Central
Bank of Iraq by the Central Bank of Jordan regarding Arab
Bank's application to resume its business in Iraq.

Allow me also to refer to your letter addressed to His
Majesty King Abdullah II in which you requested His Majesty's
help to facilitate a meeting between your people and the Arab
Bank.

As you may also be aware, the Arab Bank has responded
positively to a direct approach by the CPA inviting it to
consider re-establishing an operating presence in Iraq, and
the Bank subsequently submitted an application for a banking
license in accordance with the terms of the RFA dated 5

November 2003.

I am sure, Your Excellency, that you will appreciate our
disappointment in learning that the Arab Bank was not among
the institutions selected to proceed in the licensing
process, despite what I believe to be a complete business
case submitted by the Bank. It is my understanding, however,
that additional bank licenses may be issued shortly, and I am
therefore writing to you now in the hope that you may want to
look into the matter in order to give Arab Bank application's
favourable consideration.

Please be assured that I would not have taken this initiative
had I not been entirely convinced of Arab Bank's ability and
commitment to contribution to the development of Iraq's
economy, which of course is ultimately also in the interest
of the Jordanian economy.

Kind regards,

/s/

Faisal El Fayez

Attachment: Letter to Dr. Sinan Shabibi


4. Letter from Governor and Chairman of the Board of the
Central Bank of Jordan Umayya Toukan to Central Bank of Iraq
Governor Shabibi:

February 8, 2004

Your Excellency,
I am writing to you with reference to the licensing of
non-Iraqi banks in Iraq. Arab Bank, a distinguished
Jordanian bank, which has strongly established itself
regionally and internationally, has expressed interest to
re-open its branches in Iraq. The Central Bank of Jordan, as
the regulatory authority for banks in Jordan, would like to
strongly support Arab Bank in this interest to re-open in
Iraq. Arab Bank is highly rated by established rating
institutions, and I myself had the opportunity to visit the
OCC in New York, who also confirmed that Arab Bank in New
York is highly regarded by them. We regularly inspect the
financial statements of Arab Bank on a consolidated basis and
it is granted the top rating in all the aspects of the CAMEL
rating system. Its management is respected in Jordan due to
its good governance standards and integrity.

More significantly, Arab Bank enjoys a well-deserved
reputation for successful banking operations and for its
proactive lending policies to the economies and
infrastructure of the region. We have therefore no doubt
that they will equally be able to contribute in an effective
way towards the development of Iraq's economy and to the
performance of its banking system.

We understand that three banks have already been licensed to
operate in Iraq. We sincerely hope that Arab Bank will be
afforded the opportunity to operate in Iraq as the fourth
non-Iraqi Bank.

Yours sincerely,

/S/

Dr. Umayya Toukan
Governor, Chairman of the Board


5. Following, for reference, is the text of the letter to
King Abdullah referred to in paragraph two of Prime Minister
El Fayez's letter to Administrator Bremer (para 3 above):

Your Majesty:

Allow me to thank you for the courtesy of receiving my
colleagues during their visit to Amman earlier this month.
Our discussions with your officials continue and have been
fruitful.

I appreciate your deep interest in our efforts here and know
of your wish to find ways of greater economic cooperation
between Iraq and Jordan. A primary concern of ours is to
expand international banking relationships. I understand
that the Arab Bank has expressed an interest in Iraq. They
are, of course an excellent bank with an outstanding
reputation.

Because of our needs I have asked two of my close colleagues
to visit the Arab Bank in Jordan. They are Peter McPherson,
Director of Economic Development and Tom Foley, Director of
Private Sector Development. I would like them to come to
Jordan as soon as possible to discuss ways in which the Arab
Bank of Jordan might be able to assist as in developing an
urgent program for small and medium-size business loans.
While we can communicate directly with the Arab Bank, it
would mean a great deal to us if you could ask them to
receive my colleagues early in the week so that this
important work can begin at once.

Thank you once more for your continuing support and
assistance.

Sincerely,

/S/


L. Paul Bremer III
Administrator
GNEHM