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