DUTCH CONSIDERING CONTRIBUTIONS TO IFC'S PRIVATE

UNCLAS THE HAGUE 002208 SIPDIS E.O. 12958: N/A TAGS: EFIN EAID PREL ECON EINV NL SUBJECT: DUTCH CONSIDERING CONTRIBUTIONS TO IFC'S PRIVATE ENTERPRISE PARTNERSHIP FOR THE MIDDLE EAST AND NORTH AFRICA REF: STATE 186398 ¶1. ECONCOUNS and Econoff delivered September 2, 2004, reftel points to Gita Salden, Head of the International Economy and Financial Institutions Division within the Foreign Financial Relations Directorate of the Dutch Finance Ministry. (POLCOUNS delivered points separately on August 31 to Michiel den Hond, Director of the MFA's Department of North African and Middle Eastern Affairs.) While private sector investment was a GONL priority, Salden said that the GONL would need to ensure that any financial contributions to the International Finance Corporation (IFC)'s proposed SME technical assistance facility, "The Private Enterprise Partnership for the Middle East and North Africa," did not conflict with current GONL commitments within the African Development Bank. While the Dutch would most likely support the facility's creation when it comes before the IFC Board, Salden said, any decision on a Dutch contribution would require the concurrence of the Development Cooperation Ministry, from whose budget the money would come. Finding such funding could be difficult, she suggested, and could require a reduction of Dutch assistance funds to other projects and/or countries. (GONL foreign assistance is currently capped at 0.8 percent of GDP.) Without making any promises, Salden said she would raise the matter with her Development Cooperation Ministry colleagues and emphasize the role that Finance Minister Gerrit Zalm, representing the EU Presidency, will play in upcoming October World Bank/IMF meetings as well as the October 1 G-8 Finance Ministers meeting, where the IFC facility will be discussed. ¶2. Post will report septel any further developments on this issue. RUSSEL