CANADA REMAINS COOL TO JORDAN,S REQUEST TO RAISE

UNCLAS OTTAWA 002673

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: EFIN KTIA CA JA GM
SUBJECT: CANADA REMAINS COOL TO JORDAN,S REQUEST TO RAISE
ITS PARIS CLUB DEBT SWAP CEILING TO 50 PERCENT FROM 30
PERCENT

REF: SECSTATE 163071


1. (SBU) Finance Canada tells us that the GOC believes Jordan
benefitted from exit treatment (that is, it was not expected
back at the Paris Club) and does not need more debt
assistance. On debt swaps more generaly, Finance officials
are concerned that swaps are often used for trade distortion
and, at the last G-7 meeting, asked for a methodology
discussion on use of debt swaps. They have not heard that
there is any momentum within the G-7 for such discussion.


2. (SBU) Finance has not given recent full consideration to
the specific case of Jordan's request for an increase in its
debt swap ceiling. They asked if the USG plans to raise the
issue at the next Paris Club meeting, noting that it is not
on the agenda.

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WILKINS