CURRENT STATUS OF IRAQI FROZEN ASSETS IN JORDAN

C O N F I D E N T I A L AMMAN 005419 SIPDIS E.O. 12958: DECL: 06/29/2014 TAGS: EFIN EAID IZ JO SUBJECT: CURRENT STATUS OF IRAQI FROZEN ASSETS IN JORDAN REF: A. AMMAN 04670 ¶B. AMMAN 04330 ¶C. AMMAN 04275 Classified By: Ambassador Edward Gnehm, Reasons 1.5 (b) and (d). ¶1. (C) On June 29, ECOUNS spoke with Finance Ministry Secretary General Mohammad Mumtaz about the current status of SIPDIS the frozen Iraqi assets remaining in Jordan. As reported in reftels, Jordan is reviewing private sector claims against these assets and will transfer the remaining balance to Iraq once the review is complete. On June 2, Finance Minister Mohammad Abu Hammour had stated that he expected these reviews to be completed by early July and the remaining balance could then be transferred (Ref A). He also said that he hoped the final transfer of assets would create a good starting point for Jordan's relations with the new Iraqi government. On June 20, Abu Hammour told ECOUNS the review was continuing but that each claim was being reviewed thoroughly. ¶2. (C) According to Secretary General Mumtaz, the review is not yet complete. The committee, composed of representatives from the Finance Ministry, Central Bank, and Ministry of Industry and Trade, has a small number of reviews to complete. Mumtaz expects the process to take another couple weeks. (COMMENT: Minister Abu Hammour has committed to return any funds paid out for these claims if Iraqi authorities determine that the claims were fraudulent. END COMMENT.) ¶3. (C) Mumtaz also raised the issue of the $56 million which constitutes the capital of the Jordanian branch of Iraq-owned Rafidain Bank and is a significant portion of the remaining frozen assets. Jordan continues to await official communication from Iraqi authorities on the disposition of these funds. (COMMENT: During a May 4 meeting with Abu Hammour, an Iraqi Finance Ministry official accompanying CPA official John Vardaman said Iraq preferred to keep Rafidain's capital in Jordan, as working capital for the bank. END COMMENT.). ¶4. (U) Baghdad minimize considered. GNEHM