C O N F I D E N T I A L ROME 000430

SIPDIS


E.O. 12958: DECL: 05/02/2014
TAGS: EAID ECON EFIN IZ IT IRAQI FREEDOM
SUBJECT: IRAQ: UPDATE ON ITALY AND THE IFC SMALL BUSINESS
FACILITY

REF: A. ROME 401

B. SECSTATE 23349

C. ROME 121

CLASSIFIED BY: ECON MINISTER COUNSELOR, SCOTT KILNER, REASONS 1.5 B, D.


1. (C) ECONOFF MADE REF B POINTS FEBRUARY 5 TO LUIGI
MACCOTTA, DEPUTY DIRECTOR OF THE MFA IRAQ TASK FORCE, URGING
GOI SUPPORT FOR THE INTERNATIONAL FINANCE CORPORATION'S SMALL
BUSINESS FINANCING FACILITY FOR IRAQ. MACCOTTA NOTED THAT
WHILE THE GOI WOULD LIKE TO SUPPORT THE DEVELOPMENT OF SMALL-
AND MEDIUM-SIZED COMPANIES IN IRAQ OVER THE LONGER TERM,
BUDGET CONSTRAINTS AND POLITICAL PRESSURES WERE FORCING THE
GOI TO FOCUS ON RECONSTRUCTION PROJECTS THAT CAN YIELD MORE
IMMEDIATE, TANGIBLE RESULTS FOR ITALY. ACCORDINGLY, MACCOTTA
REITERATED, THE GOI WOULD BE UNLIKELY TO CONTRIBUTE TO THE
FACILITY (REF C).


2. (C) DR. SILVIA ZUCCHINI (STRICTLY PROTECT), A FORMER
TREASURY EMPLOYEE NOW WORKING AT THE ITALIAN EXPORT CREDIT
AGENCY SACE, CONFIRMED THAT THE GOI WAS UNLIKELY TO
CONTRIBUTE TO THE FACILITY, BUT NOTED THAT THE TREASURY HAD
YET TO MAKE A FINAL DECISION. IF THE GOI WERE TO DIRECT
FUNDS TO THE FACILITY, ZUCCHINI NOTED, IT WOULD NOT BE MORE
THAN EURO 1 MILLION.


3. (U) BAGHDAD MINIMIZE CONSIDERED.
SEMBLER

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2004ROME00430 - Classification: CONFIDENTIAL