Identifier
Created
Classification
Origin
07OSLO91
2007-02-01 15:32:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Oslo
Cable title:  

NORWAY OPEN TO QUICKLY CLEARING LIBERIA'S ARREARS

Tags:  ECON EFIN PGOV LI NO 
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PP RUEHWEB

DE RUEHNY #0091 0321532
ZNR UUUUU ZZH
P 011532Z FEB 07
FM AMEMBASSY OSLO
TO RUEHC/SECSTATE WASHDC PRIORITY 5134
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
UNCLAS OSLO 000091 

SIPDIS

SIPDIS
SENSITIVE

DEPARTMENT FOR EB/IFD/OMA ABESMER

E.O. 12958: N/A
TAGS: ECON EFIN PGOV LI NO
SUBJECT: NORWAY OPEN TO QUICKLY CLEARING LIBERIA'S ARREARS

REF: STATE 9925

UNCLAS OSLO 000091

SIPDIS

SIPDIS
SENSITIVE

DEPARTMENT FOR EB/IFD/OMA ABESMER

E.O. 12958: N/A
TAGS: ECON EFIN PGOV LI NO
SUBJECT: NORWAY OPEN TO QUICKLY CLEARING LIBERIA'S ARREARS

REF: STATE 9925


1. (SBU) SUMMARY: Norway wants to see a quick clearing of
Liberia's International Financial Institution (IFIS) arrears
and is open to solutions. However, Norway is concerned about
custom deals setting precedents that could ultimately damage
IFIS financial health. Norway is willing to compensate IFIS
on a fair share basis in line with G-8 HIPC proposals. While
they want to see a rapid solution, any agreement should not
be seen in isolation and should not be a quick fix. Norway
will act in concert with Nordic/Baltic partners on IMF and WB
boards. END SUMMARY


2. (SBU) On January 30 we delivered reftel proposal and
background to Norwegian Ministry of Foreign Affairs Deputy
Director General for Multilateral Bank and Finance Henrik
Harboe. Harboe told us that Norway wants to see a quick
settlement of Liberia's arrears and that they agree with us
that Somalia and Sudan are not ready for an arrears exercise
at this time. While not opposed to "de-linking" World Bank
and African Development Bank settlements from the IMF, it is
important to find a comprehensive solution that covers all
institutions and does not simply provide a quick fix. Harboe
thought that a mix of fresh money contributions and existing
IFIS resources would be the best way to move forward.


3. (SBU) Harboe stressed that arrangements with the
International Financial Institutions (IFIS) set precedents
and cannot be seen in isolation, particularly when
settlements of arrears even larger than Liberia's are
concerned. Also, the financial impact that large arrears
clearing will have on the IFIS themselves needs to be
considered. To help lessen this impact, Harboe stated that
Norway was willing to compensate IFIS on a fair share basis
with other countries, in line with the G-8's proposal for
Heavily Indebted Poor Countries (HIPC).


4. (SBU) Harboe said that Norway will act in concert with
their Nordic/Baltic country partners on IMF and WB board
matters. Norway will be represented at the February 13-14
Partners Forum by Ministry of Development State Secretary
Anne Stenhammer. Ministry of Foreign Affairs Adviser for
West African Affairs Hilde Johansen will also attend the
Partners Forum.
WHITNEY