|06DUBLIN1326||2006-11-13 08:27:00||UNCLASSIFIED//FOR OFFICIAL USE ONLY||Embassy Dublin|
VZCZCXRO5914 RR RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV DE RUEHDL #1326 3170827 ZNR UUUUU ZZH R 130827Z NOV 06 FM AMEMBASSY DUBLIN TO RUEHC/SECSTATE WASHDC 7694 INFO RUCNMEM/EU MEMBER STATES RUEATRS/TREASURY WASHDC RUEHBS/USEU BRUSSELS
UNCLAS DUBLIN 001326
E.O. 12958: N/A
TAGS: EFIN ECON IZ EI
SUBJECT: IRELAND TO WRITE OFF NEARLY ALL IRAQI DEBT
REF: A. STATE 181094
B. YOUNG-WEBSTER E-MAIL OF 11/8/06
(SBU) The Irish Government is in the process of forgiving
roughly 90 percent of remaining Iraqi debt, according to
Gerry Wrynn, Department of Enterprse, Trade, and Employment
(DETE) Bilateral TradeUnit officer, to whom A/DCM delivered
ref A demache on November 9. Wrynn noted that DETE had
opeated an export credit insurance scheme for many yers to
assist Irish exporters who were trading inemerging markets.
DETE provided a significant potion of this insurance to
companies selling good, mainly beef, to Iraq. After the
Iraqi invasionof Kuwait, many Iraqi companies defaulted on
debs owed to Irish export firms. DETE paid the Irishfirms
for the losses covered and effectively becme the owner of
the debt. The new Iraqi adminisration, said Wrynn, has
offered to repay 10 percet of this original debt plus
limited interest to a number of creditors, including Ireland.
DETE has accepted the offer and, over the last three years,
has received roughly euro 4.5 million in settlement of the
previous debt, either directly from the Iraqi administration
or from selling the debt in advance on the open market.
Wrynn explained that Ireland held no other forms of Iraqi
debt, as A/DCM also confirmed with the Department of Foreign
Affairs and the Department of Finance.