Identifier
Created
Classification
Origin
06SOFIA1562
2006-11-15 08:29:00
CONFIDENTIAL
Embassy Sofia
Cable title:  

BULGARIA NEGOTIATING WITH IRAQ ON DEBT RELIEF

Tags:  ECON EFIN IZ BU 
pdf how-to read a cable
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DE RUEHSF #1562 3190829
ZNY CCCCC ZZH
P 150829Z NOV 06
FM AMEMBASSY SOFIA
TO RUEHC/SECSTATE WASHDC PRIORITY 2827
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEHGB/AMEMBASSY BAGHDAD PRIORITY 0114
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
C O N F I D E N T I A L SOFIA 001562 

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/14/2016
TAGS: ECON EFIN IZ BU
SUBJECT: BULGARIA NEGOTIATING WITH IRAQ ON DEBT RELIEF

REF: SECSTATE 181094

Classified By: Amb. John Beyrle for reasons 1.4 B & D

C O N F I D E N T I A L SOFIA 001562

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/14/2016
TAGS: ECON EFIN IZ BU
SUBJECT: BULGARIA NEGOTIATING WITH IRAQ ON DEBT RELIEF

REF: SECSTATE 181094

Classified By: Amb. John Beyrle for reasons 1.4 B & D


1. (C) Ambassador Beyrle delivered talking points in reftel
to Minister of Finance Plamen Oresharski on November 14,
stressing the need for Bulgaria to reach an agreement that
will allow Iraq to get its fiscal house in order. Although
we have lobbied for Bulgaria to adopt a Paris Club-like
agreement, Beyrle pushed for one hundred percent forgiveness
as a robust commitment to the International Compact with Iraq
(ICI) that would send a strong message that Bulgaria wants to
help stabilize Iraq.


2. (C) Oresharski and his Iraqi counterpart met in Singapore
recently and agreed on many details of an agreement, but have
not fully clarified the amount of debt. The difference rides
on how much interest has accrued. According to Oresharski,
Iraq initially refused to consider any interest accrued after
1990, but has since softened a bit. In early November, the
two sides made further progress during the visit to Sofia of
Iraq's Deputy Finance Minister, but again, did not finish the
deal. Oresharski predicted they would finalize the process
in late December or early next year.


3. (C) Oresharski listened to the Ambassador's pitch on 100
percent forgiveness, but said it would be a difficult
political sell. He promised to bring the idea to the Prime
Minister. He felt a better option at this point is to
convince the three-party political coalition that makes up
the Bulgarian government to adopt a deal similar to the Paris
Club terms. Oresharski said public expectations were "too
irrational" for anything beyond Paris Club. Bulgaria
recently received a proposal from an American investment
company which we will translate and forward to the Bulgarian
desk and EB/OMA. The proposal calls for an 11 percent
recovery, all up front, which Oresharski informed us is
equivalent to a 20 percent recovery over 23 years.
Oresharski prefers this plan because it is cleaner, and
resolves the issue immediately. He said the Iraqis are aware
of the proposal, and agree in principle.
BEYRLE