Identifier
Created
Classification
Origin
05ABUDHABI1550
2005-04-06 12:23:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Abu Dhabi
Cable title:  

ARBIFT $116 MILLION UNFROZEN...FINALLY

Tags:  ECON ETRD EFIN KIDE 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.

061223Z Apr 05
UNCLAS ABU DHABI 001550 

SIPDIS

SENSITIVE

STATE PASS USTR FOR DOUGLAS BELL
MANAMA FOR JBEAL

E.O. 12958: DECL: N/A
TAGS: ECON ETRD EFIN KIDE
SUBJECT: ARBIFT $116 MILLION UNFROZEN...FINALLY


UNCLAS ABU DHABI 001550

SIPDIS

SENSITIVE

STATE PASS USTR FOR DOUGLAS BELL
MANAMA FOR JBEAL

E.O. 12958: DECL: N/A
TAGS: ECON ETRD EFIN KIDE
SUBJECT: ARBIFT $116 MILLION UNFROZEN...FINALLY



1. (SBU) On April 2, Abu Dhabi EconChief and Manama OFAC attach
met with Ibrahim Lootah, the Managing Director of the Arab Bank
for Investment and Foreign Trade (ARBIFT). They met to discuss
whether J.P. Morgan Chase Bank had released ARBIFT's assets
frozen pursuant to the lifting of U.S. sanctions on Libya -
Lootah reported that after six months of delay, Chase finally
released the $116 million in frozen assets (Note. the Libyan
sanctions were lifted in September 20, 2004. Endnote.). Lootah
said that Chase never gave any reason for holding the assets
after the U.S. had lifted ILSA sanctions on Libya, and he added
that Chase required ARBIFT to sign a form permitting Chase to re-
freeze the assets, should it become necessary. According to
Lootah Chase is still in the process of transferring a small
portion of the $116 million from the Chase accounts back to
ARBIFT, but he was satisfied that the money was no longer being
frozen. Also the two banks are discussing approximately $50,000
that ARBIFT claims it should receive in interest for January and
February, but Lootah did not see this as a major impediment and
expected it to be resolved.


2. (SBU) Comment: Resolution of this issue is good news. The
continued freezing of the assets six months after the lifting of
sanctions has been a sore spot with the Emiratis. The UAEG cited
the issue often during the recent FTA negotiations and raised it
several times with Embassy officials. End comment.

Albright