TAJIKISTAN BANKERS EXCHANGE: ANOTHER SET OF CONVERTS

C O N F I D E N T I A L SECTION 01 OF 02 DUSHANBE 000509

SIPDIS

SIPDIS

STATE FOR SCA/CEN, DRL

E.O. 12958: DECL: 4/3/2017
TAGS: PGOV PREL ECON EAID KPAO TI
SUBJECT: TAJIKISTAN BANKERS EXCHANGE: ANOTHER SET OF CONVERTS


CLASSIFIED BY: TJACOBSON, AMBASSADOR, STATE, STATE.
REASON: 1.4 (b),(d)




1. (U) Summary: "Washington is the city of smiles!!" At an
International Visitor Program exchange debrief March 28,
Tajikistan's top bankers marveled as much about the technical
and practical lessons observed in the U.S. banking system, as
about at the openness of U.S. society and economy, and the
warmth of the Americans they encountered during their February
22- March 3 visit. The visitor program -- designed to give
professionals exposure to U.S. practices and leaders -- hit its
target with a bang, leaving the Tajiks appreciative of the
high-level attention and filled with ideas to continue the
mutual understanding "exchange" aspect, by inviting U.S. bankers
to visit Tajikistan and getting technical assistance. Post can
use the new level of cooperation and goodwill to push for more
regulatory and macro-economic reform, and hopes to leverage this
through continued visits and attention from Washington. End
Summary.

Strong Impressions

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2. (U) Despite the far-fetched (or face saving) observation
that "U.S. Banks are just like Tajik banks, only you deal with
billions of dollars, and we deal with hundreds of somonis," the
heads of Tajikistan's top four banks and a National Bank
official gained a solid respect for the regulatory and
management facets of the U.S. system. In an animated debriefing
the bankers thanked the Embassy for arranging such "high-level
meetings" and spelled out some the things they found most
impressive in the U.S. banking sector:

--The U.S. Federal Reserve System

--Module Management plans from Citibank

--Bankers' Associations: Saidmurodov, head of Agroinvest Bank
observed that Tajik banks have no formal mechanism to lobby the
government in their interest.

-- Credit bureaus

-- Credit Unions: Izatullo Lalbekov, head of Tojiksoditorot
Bank joined a savings association in Dallas, and marveled that
with only $5 down, he could get access to credit

--The New York Stock Exchange: "We've been trying to do this
for three years in Tajikistan, and we are still at zero."


3. (U) ~and in the United States in general:

-- U.S. Agricultural production: "Twenty percent of your
population is farmers and manage to feed the other 80%, where in
Tajikistan, 70 percent of the population farms and still cannot
feed the remaining 30%." (Note: We didn't explain the
population involved in agriculture was actually much, much less
that 20%. End Note)

--Democracy: Said Lalbekov: "People on the ground level have the
right to express their points of view or wishes. If I saw
someone wearing shorts in my village, I would make him change
his clothes. But in the United States, everyone has the right
to do what they want."

--American hospitality: "People were so smiley," they all
noticed, particularly in Washington and Texas.

What Next?

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4. (U) The bankers all hoped to implement some of the processes
they observed, but noted they would need technical assistance
for some, including the following:

-- An association of bankers

-- Use of business plans

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-- Money laundering regulations

-- A stock exchange. Hasan Sadulloev, head of Orionbank,
Tajikistan's largest commercial bank, requested technical
assistance from the United States in helping establish a stock
exchange in Dushanbe


5. (U) Mahmadamin Mahadaminov, head of Amonat State Savings
bank requested technical assistance for English language
proposal writing, as well as further exchanges for bankers and
their staff. The bankers proposed inviting U.S. bankers to
Tajikistan to show off their country and industry.


6. (SBU) At a reception March 30, Turakul Haqnazarov, the head
of the National Banks' Banking Supervision department told
PolOff the visit had been very successful, but bankers he
accompanied still had many lessons to learn about supervision
and banking systems. The program had opened their eyes to some
of the regulatory aspects that they had previously ignored.
"Still, we need to keep repeating the lessons."

Next Steps

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7. (U) USAID's Banking Supervision program has helped push
Tajikistan's banking supervision towards the modern age, but
will need continued support and funding.


8. (U) Post would welcome visits, short or long-term, from
officials who would reinforce the message about banking systems
and structures. Post also requests technical assistance on
money laundering regulations, either through visits or training
programs for bankers and legislators.


9. (C) Comment: The composition of the delegation made this
program particularly important and successful in getting our
message on economic reform and U.S. values to Tajikistan's top
leadership. Sadulloev is not just the Orionbank head, but
President Rahmonov's brother-in-law, key confidant and advisor.
Due to his heavy workload, he agreed to participate only after
strong requests from the Ambassador and others. His exposure to
U.S. banks and top-level officials may have provided us with a
backdoor to the somewhat isolated President Rahmonov. Programs
like this are the best way we can compete with the Russians and
Iranians for influence and access. End Comment.
JACOBSON