TAIWAN EXPORT CREDITS FOR SHIPMENTS TO IRAN

UNCLAS AIT TAIPEI 000248 SIPDIS SENSITIVE SIPDIS STATE FOR EB/IFD/ODF, EB/ESC/TFS AND EAP/TC TREASURY FOR IA/OFFICE OF TRADE FINACE E.O. 12958: N/A TAGS: EFIN MNUC OECD TW SUBJECT: TAIWAN EXPORT CREDITS FOR SHIPMENTS TO IRAN REF: SECSTATE 4760 Taiwan Export-Import Bank -------------- ¶1. (SBU) Per reftel request, AIT/T Econ Chief on January 24, 25 and 26 requested Taiwan banking authorities provide information on the status of export credit facilities Taiwan provides to Iran. While Taiwan authorities are still gathering comprehensive information to respond to our request, the President of Taiwan's Export-Import Bank, LII Sheng-yann, told us January 25 that Taiwan provides about US$13 million in short-term credits for Taiwan exporters to conduct business with Iran. President LII said their long-term exposure was "very small." ¶2. (SBU) LII, along with his two Executive Vice Presidents, Charles C.C. WANG and Robert R.F. CHU, emphasized that Taiwan EXIM Bank has no relationship of any kind with either Iranian banks or Iranian companies. LII said his bank only extends credit to Taiwan exporters. Taiwan's EXIM also provides export credit insurance of around US$20 million. They said they have never had a claim filed on Iran for the insurance they have provided and do not have any delinquent accounts on the credit side either. Central Bank Collecting Data -------------- ¶3. (SBU) On January 24, we met with George CHOU, Director of the Foreign Exchange Department, Central Bank of China (CBC). We advised him that the U.S. is proposing to limit export credits for Iran and that as a first step we would like to understand the nature and volume of export credits Taiwan may be extending to Iran. CHOU said he believes Taiwan's Export-Import bank extends credits for trade with Iranian companies and agreed to find out how much business is done by Taiwan's official credit agencies and also see if data is available on credits that may be provided by private commercial banks. CHOU also suggested we meet with the Financial Supervisory Commission (FSC),Taiwan's banking regulator. On January 31, CHOU notified us that he is still collecting information and believes that several private commercial banks in Taiwan provide export credits for trade with Iran. AIT will forward further information upon receipt. Banking Supervisor -------------- ¶4. (SBU) On January 26, per CHOU's suggestion, we visited the FSC and met with CHANG Tzy-hao, Assistant Director, Banking Bureau, LO Tien-hui, Director, International Affairs Department and several staff people. We posed the same question to FSC as we had to CBC. The FSC staffers also agreed to look into the question, but did not have any immediate information on the amount or type of credits available for trade with Iran. WANG