Polish Government Appreciates USG Acceptance of

UNCLAS WARSAW 000742 SIPDIS Sensitive STATE FOR EUR/NCE TARA ERATH AND MICHAEL SESSUMS TREASURY FOR OASIA MATTHEW GAERTNER FRANKFURT FOR TREASURY JIM WALLAR E.O. 12958: N/A TAGS: EFIN PREL PL SUBJECT: Polish Government Appreciates USG Acceptance of Paris Club Repayment Proposal Ref: (A) State 16349 (B) 2004 Warsaw 5662 (U) This cable is sensitive, but unclassified, and NOT for Internet distribution. ¶1. (U) On January 28, Econ Counselor delivered the news that the USG creditor agencies would participate in Poland's offer to prepay its Paris Club debt to Finance U/S Szczuka. Econoff subsequently followed up with MOF technical experts. During these conversations, we took the opportunity to explain this decision involved the USG making a budget allocation of $137 million to cover the prepayment. GOP officials were very appreciative of the USG decision to support Poland's proposal. ¶2. (SBU) MOF officials report that they now have a "critical mass" of countries willing to accept Poland's proposal, enabling the ministry to prepare to approach financial markets. Poland is still lobbying some `recalcitrant' nations which it hopes will eventually accept the proposal. MOF stressed that fully discharging the Paris Club debt remains Minister Gronicki's top priority. ¶3. (U) Embassy Warsaw greatly appreciates Washington agencies' assistance and the expeditious, favorable reply. Munter NNNN 2005WARSAW00742 - Classification: UNCLASSIFIED