Identifier
Created
Classification
Origin
06KATHMANDU637
2006-03-08 06:14:00
CONFIDENTIAL
Embassy Kathmandu
Cable title:
GOVERNMENT OFFERED TOO-GOOD-TO-BE-TRUE LOAN
how-toVZCZCXYZ0005 OO RUEHWEB DE RUEHKT #0637/01 0670614 ZNY CCCCC ZZH O 080614Z MAR 06 FM AMEMBASSY KATHMANDU TO RUEHC/SECSTATE WASHDC IMMEDIATE 0628 INFO RUEHLO/AMEMBASSY LONDON IMMEDIATE 3675 RUEHNE/AMEMBASSY NEW DELHI IMMEDIATE 9324 RUEHBJ/AMEMBASSY BEIJING PRIORITY 4020 RUEHLM/AMEMBASSY COLOMBO PRIORITY 4282 RUEHKA/AMEMBASSY DHAKA PRIORITY 9358 RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 2269 RUEHGO/AMEMBASSY RANGOON PRIORITY 0968 RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY RHEFDIA/DIA WASHDC PRIORITY RUCNFB/FBI WASHDC PRIORITY RHHMUNA/CDR USPACOM HONOLULU HI PRIORITY RUEAWJA/DEPT OF JUSTICE WASHDC PRIORITY RUEKJCS/SECDEF WASHDC PRIORITY RUEAIIA/CIA WASHDC PRIORITY RHEHNSC/NSC WASHDC PRIORITY
C O N F I D E N T I A L KATHMANDU 000637
SIPDIS
SIPDIS
DEPT FOR SCA/INS, SCA/RA, S/CT, EB/ESC/TFS
E.O. 12958: DECL: 03/07/2016
TAGS: PTER KCRM EFIN UK NP
SUBJECT: GOVERNMENT OFFERED TOO-GOOD-TO-BE-TRUE LOAN
Classified By: Ambassador James F. Moriarty. Reasons 1.4 (b/d).
C O N F I D E N T I A L KATHMANDU 000637
SIPDIS
SIPDIS
DEPT FOR SCA/INS, SCA/RA, S/CT, EB/ESC/TFS
E.O. 12958: DECL: 03/07/2016
TAGS: PTER KCRM EFIN UK NP
SUBJECT: GOVERNMENT OFFERED TOO-GOOD-TO-BE-TRUE LOAN
Classified By: Ambassador James F. Moriarty. Reasons 1.4 (b/d).
1. (U) This is an action request. See paragraph 4.
USD 250 Million Loan at 5 percent
--------------
2. (C) In a March 7 meeting, Minister of State for Finance
Roop Jyoti sought the advice of the Ambassador regarding a
proposed foreign loan to His Majesty's Government of Nepal
(HMGN). Jyoti stated that Tryed Finance Limited, based in
London, had offered HMGN a USD 250 million loan at five
percent per year payable by HMGN, for twenty years, with five
percent to Tryed up front (i.e. USD 12.5 million). Jyoti
acknowledged that it sounded "too good to be true," but
explained that HMGN did not have the capability to ascertain
if the loan was from a legitimate source. He asked for U.S.
assistance to determine whether any criminal or terrorist
sources were associated with Tryed, as he stressed that HMGN
did not want to be involved in money laundering or other
action that would lead to sanctions against HMGN, or give
HMGN a bad reputation. (Jyoti at one point suggested that
HMGN could accept the loan to bait a trap for the wrongdoers
if the money was found to be illicit.) However, he noted
that HMGN needed the money, and was interested in pursuing
the loan if the money was found to be clean. (Note: IMF
Resident Advisor Sukhwinder Singh, had alerted the Ambassador
that Jyoti planned to approach the USG about this loan.
Singh commented that Jyoti had told him that he had received
instructions from the King "to make it happen, but make sure
it is not illegal." End note.)
Information on Loan Provider
--------------
3. (C) Jyoti provided the Ambassador with the following
information about the company offering the loan:
Tryed Finance Limited,
Subsidiary of Multinational Industries Limited.
Registered in England, Number 4753994.
Address: 83 Caledonian Road, London N1 9BT.
Tel/Fax: 020 7713 8080.
E-mail: tryedfinancelimited1@activemail.co.uk
Website: multinational-endevco.co
P.L. Majumdar, as Director, signed a letter to Jyoti
regarding Tryed's proposal.
Action Request
--------------
4. (C) Post requests the Department to assist in determining
if Tryed is known to be associated with any illegal,
criminal, or terrorist source, or has any other questionable
ties. Post further requests guidance on what advice to pass
to HMGN on accepting a loan from Tryed. Post also requests
guidance on USG and/or international sanctions that HMGN
might face if, against U.S. advice, it accepted a loan that
was illicit in any way.
Comment
--------------
5. (C) HMGN appears to be taking all proper steps to try to
ascertain the true nature of this loan proposal, including
consulting with the IMF. IMF Representative Singh noted that
the U.K. could not release the information about a British
company to the IMF without going through Interpol, and thus
suggested that HMGN contact the U.S. for assistance, which
HMGN did. According to the IMF, the loan company, while
based in the U.K., is financially backed by non-resident
Indians. (Note: The Nepali rupee is pegged to, and fully
convertible with, the Indian rupee, which could benefit a
money laundering operation. End note.) The IMF had heard
rumors that this company had also approached Burma and North
Korea.
MORIARTY
SIPDIS
SIPDIS
DEPT FOR SCA/INS, SCA/RA, S/CT, EB/ESC/TFS
E.O. 12958: DECL: 03/07/2016
TAGS: PTER KCRM EFIN UK NP
SUBJECT: GOVERNMENT OFFERED TOO-GOOD-TO-BE-TRUE LOAN
Classified By: Ambassador James F. Moriarty. Reasons 1.4 (b/d).
1. (U) This is an action request. See paragraph 4.
USD 250 Million Loan at 5 percent
--------------
2. (C) In a March 7 meeting, Minister of State for Finance
Roop Jyoti sought the advice of the Ambassador regarding a
proposed foreign loan to His Majesty's Government of Nepal
(HMGN). Jyoti stated that Tryed Finance Limited, based in
London, had offered HMGN a USD 250 million loan at five
percent per year payable by HMGN, for twenty years, with five
percent to Tryed up front (i.e. USD 12.5 million). Jyoti
acknowledged that it sounded "too good to be true," but
explained that HMGN did not have the capability to ascertain
if the loan was from a legitimate source. He asked for U.S.
assistance to determine whether any criminal or terrorist
sources were associated with Tryed, as he stressed that HMGN
did not want to be involved in money laundering or other
action that would lead to sanctions against HMGN, or give
HMGN a bad reputation. (Jyoti at one point suggested that
HMGN could accept the loan to bait a trap for the wrongdoers
if the money was found to be illicit.) However, he noted
that HMGN needed the money, and was interested in pursuing
the loan if the money was found to be clean. (Note: IMF
Resident Advisor Sukhwinder Singh, had alerted the Ambassador
that Jyoti planned to approach the USG about this loan.
Singh commented that Jyoti had told him that he had received
instructions from the King "to make it happen, but make sure
it is not illegal." End note.)
Information on Loan Provider
--------------
3. (C) Jyoti provided the Ambassador with the following
information about the company offering the loan:
Tryed Finance Limited,
Subsidiary of Multinational Industries Limited.
Registered in England, Number 4753994.
Address: 83 Caledonian Road, London N1 9BT.
Tel/Fax: 020 7713 8080.
E-mail: tryedfinancelimited1@activemail.co.uk
Website: multinational-endevco.co
P.L. Majumdar, as Director, signed a letter to Jyoti
regarding Tryed's proposal.
Action Request
--------------
4. (C) Post requests the Department to assist in determining
if Tryed is known to be associated with any illegal,
criminal, or terrorist source, or has any other questionable
ties. Post further requests guidance on what advice to pass
to HMGN on accepting a loan from Tryed. Post also requests
guidance on USG and/or international sanctions that HMGN
might face if, against U.S. advice, it accepted a loan that
was illicit in any way.
Comment
--------------
5. (C) HMGN appears to be taking all proper steps to try to
ascertain the true nature of this loan proposal, including
consulting with the IMF. IMF Representative Singh noted that
the U.K. could not release the information about a British
company to the IMF without going through Interpol, and thus
suggested that HMGN contact the U.S. for assistance, which
HMGN did. According to the IMF, the loan company, while
based in the U.K., is financially backed by non-resident
Indians. (Note: The Nepali rupee is pegged to, and fully
convertible with, the Indian rupee, which could benefit a
money laundering operation. End note.) The IMF had heard
rumors that this company had also approached Burma and North
Korea.
MORIARTY