LEBANON: BYBLOS BANK DEMARCHE RESPONSE

S E C R E T BEIRUT 000588 SIPDIS SIPDIS NSC FOR ABRAMS/SINGH/MARCHESE/HARDING, STATE FOR NEA/ELA, NEA/FO FOR ATACHCO, E.O. 12958: DECL: 04/25/2017 TAGS: PTER UNSC EFIN KTFN LE SUBJECT: LEBANON: BYBLOS BANK DEMARCHE RESPONSE REF: STATE 48152 Classified By: Ambassador Jeffrey Feltman for reasons 1.4 (b) and (d). ¶1. (S) On April 25 Econoff and Econ Specialist met with Dr. Francois Bassile, Chairman of Byblos Bank SAL. Dr. Bassile responded to reftel demarche questions as follows. ¶2. (S) Bassile said Byblos Bank does not transact any business with or on behalf of Bank Saderat. They do have some relationship with Bank Sepah currently. This is a Letter of Credit which they purchased from a German Bank (unspecified) in August of 2006, and which expires in August ¶2007. Byblos bought a share in the paper from the German bank, which offered it to Byblos. Bassile called it "a small amount" -- $2.7 million. Byblos has no plans to continue to do business with Bank Sepah at this time. ¶3. (S) Byblos does occasionally initiate Letters of Credit on behalf of one particular Lebanese business which sells fertilizer to Iran. There are no outstanding L/Cs at this time. The Iranian bank involved has been Milli Bank, which Bassile says is the largest bank in Iran. ¶4. (S) Byblos does not have any accounts for either Bank Sepah or Bank Saderat at this time. They would not be interested in opening any accounts for either bank, according to Bassile. ¶5. (S) Byblos is very interested in complying with all of the requirements of UNSCR 1747 and all USG banking regulations. Bassile claimed that he was asked earlier in the day about a possible Letter of Credit for an Iranian transaction, and that he had refused it. FELTMAN