Identifier
Created
Classification
Origin
07ABUDHABI324
2007-02-25 14:13:00
CONFIDENTIAL
Embassy Abu Dhabi
Cable title:
UAE OFFICIALS SIGN AGREEMENT FOR $300 MILLION LOAN TO
how-toVZCZCXRO7035 RR RUEHDE RUEHDIR DE RUEHAD #0324 0561413 ZNY CCCCC ZZH R 251413Z FEB 07 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC 8404 INFO RUEHLB/AMEMBASSY BEIRUT 0568 RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
C O N F I D E N T I A L ABU DHABI 000324
SIPDIS
SIPDIS
STATE FOR NEA/ARP, NEA/ELA, NEA/RA
STATE PASS TO USAID
E.O. 12958: DECL 02/24/2017
TAGS: EAID PHUM LE AE
SUBJECT: UAE OFFICIALS SIGN AGREEMENT FOR $300 MILLION LOAN TO
LEBANON
REF: A. 06 ABU DHABI 4474
B. ABU DHABI 197
C. ABU DHABI 141
D. ABU DHABI 195
Classified by Ambassador Michele J. Sison for reasons 1.4 (b&d).
C O N F I D E N T I A L ABU DHABI 000324
SIPDIS
SIPDIS
STATE FOR NEA/ARP, NEA/ELA, NEA/RA
STATE PASS TO USAID
E.O. 12958: DECL 02/24/2017
TAGS: EAID PHUM LE AE
SUBJECT: UAE OFFICIALS SIGN AGREEMENT FOR $300 MILLION LOAN TO
LEBANON
REF: A. 06 ABU DHABI 4474
B. ABU DHABI 197
C. ABU DHABI 141
D. ABU DHABI 195
Classified by Ambassador Michele J. Sison for reasons 1.4 (b&d).
1. (U) On February 20, 2007, the UAE signed an agreement to extend a
$300 million "easy-term" loan to Lebanon, which the UAE pledged at
the January 25 Paris donors' conference. According to local press
reports, the loan will be repayable in 20 years at a 2.5 percent
interest rate plus 0.5 percent loan management fee, with a five-year
grace period for repayment.
2. (U) The agreement was signed by the Acting Director General of Abu
Dhabi Development Fund, Ahmed Hussain Al Baqer, and the Lebanese
Finance Minister, Jihad Azour, in a ceremony in Beirut attended by
the UAE Ambassador to Lebanon, Mohammed Sultan Al Suwaidi, and the
Lebanese Prime Minister, Fouad Siniora.
3. (U) Lebanese Finance Minister Jihad Azour told the press that the
loan would be used to relieve the burden of public debt on the
Lebanese economy. Azour also said Lebanon would send periodic
reports on the loans to the Abu Dhabi Development Fund.
4. (C) On February 6, Econoff met with Al Baqer to discuss the loan
to Lebanon. During that meeting, Al Baqer stated "the Abu Dhabi Fund
for Development does not provide debt services relief." He added
that cash is very difficult to give since the Fund cannot keep track
of what it is being used for (Ref D). On February 25, Econoff spoke
to Al Baqer who confirmed that the $300 million would indeed be used
to relieve the Lebanese public debt. Al Baqer explained that
although the Fund does not usually provide debt services relief, "The
situation in Lebanon is unusual and Lebanon has heavy debts to be
serviced." He also said, "The Fund decided to use the money for the
Lebanese public debt instead of projects since other countries are
providing project money."
SISON
SIPDIS
SIPDIS
STATE FOR NEA/ARP, NEA/ELA, NEA/RA
STATE PASS TO USAID
E.O. 12958: DECL 02/24/2017
TAGS: EAID PHUM LE AE
SUBJECT: UAE OFFICIALS SIGN AGREEMENT FOR $300 MILLION LOAN TO
LEBANON
REF: A. 06 ABU DHABI 4474
B. ABU DHABI 197
C. ABU DHABI 141
D. ABU DHABI 195
Classified by Ambassador Michele J. Sison for reasons 1.4 (b&d).
1. (U) On February 20, 2007, the UAE signed an agreement to extend a
$300 million "easy-term" loan to Lebanon, which the UAE pledged at
the January 25 Paris donors' conference. According to local press
reports, the loan will be repayable in 20 years at a 2.5 percent
interest rate plus 0.5 percent loan management fee, with a five-year
grace period for repayment.
2. (U) The agreement was signed by the Acting Director General of Abu
Dhabi Development Fund, Ahmed Hussain Al Baqer, and the Lebanese
Finance Minister, Jihad Azour, in a ceremony in Beirut attended by
the UAE Ambassador to Lebanon, Mohammed Sultan Al Suwaidi, and the
Lebanese Prime Minister, Fouad Siniora.
3. (U) Lebanese Finance Minister Jihad Azour told the press that the
loan would be used to relieve the burden of public debt on the
Lebanese economy. Azour also said Lebanon would send periodic
reports on the loans to the Abu Dhabi Development Fund.
4. (C) On February 6, Econoff met with Al Baqer to discuss the loan
to Lebanon. During that meeting, Al Baqer stated "the Abu Dhabi Fund
for Development does not provide debt services relief." He added
that cash is very difficult to give since the Fund cannot keep track
of what it is being used for (Ref D). On February 25, Econoff spoke
to Al Baqer who confirmed that the $300 million would indeed be used
to relieve the Lebanese public debt. Al Baqer explained that
although the Fund does not usually provide debt services relief, "The
situation in Lebanon is unusual and Lebanon has heavy debts to be
serviced." He also said, "The Fund decided to use the money for the
Lebanese public debt instead of projects since other countries are
providing project money."
SISON