Identifier
Created
Classification
Origin
08ATHENS626
2008-05-08 12:45:00
CONFIDENTIAL
Embassy Athens
Cable title:
IRAQ: GREEK MFA ON ICI AND DEBT FORGIVENESS
how-toVZCZCXRO8548 OO RUEHBC RUEHBW RUEHDE RUEHIHL RUEHKUK DE RUEHTH #0626 1291245 ZNY CCCCC ZZH O 081245Z MAY 08 FM AMEMBASSY ATHENS TO RUEHC/SECSTATE WASHDC IMMEDIATE 1752 INFO RUCNRAQ/IRAQ COLLECTIVE PRIORITY RUEHZG/NATO EU COLLECTIVE PRIORITY
C O N F I D E N T I A L ATHENS 000626
SIPDIS
NEA/I
E.O. 12958: DECL: 05/07/2018
TAGS: EAID ECON EFIN EINV PGOV PREL IZ GR
SUBJECT: IRAQ: GREEK MFA ON ICI AND DEBT FORGIVENESS
POLITICS
REF: A. SECSTATE 43799
B. ATHENS 139
Classified By: A/POLCOUNS JEFF HOVENIER. REASONS 1.4 (B) AND (D).
C O N F I D E N T I A L ATHENS 000626
SIPDIS
NEA/I
E.O. 12958: DECL: 05/07/2018
TAGS: EAID ECON EFIN EINV PGOV PREL IZ GR
SUBJECT: IRAQ: GREEK MFA ON ICI AND DEBT FORGIVENESS
POLITICS
REF: A. SECSTATE 43799
B. ATHENS 139
Classified By: A/POLCOUNS JEFF HOVENIER. REASONS 1.4 (B) AND (D).
1. (C) DepPolCouns delivered ref A demarche on the May 29
International Compact with Iraq (ICI) Ministerial to MFA A6
Directorate for Middle East Affairs deputy head Giorgos
Ayfantis. Ayfantis was unable to say definitively which
senior Greek official would attend the Ministerial, but he
believed it would be Deputy FM Doukas, who specializes in
economic affairs.
2. (C) DepPolCouns also discussed with Ayfantis the
settlement of Iraq's outstanding debt with Greece (est. $231
million). Ayfantis said both the Greek Embassy in Baghdad
and the MFA favored forgiving Iraq's debt as a vote of
confidence in the Iraqi government and a way to start over
with a clean slate. The issue was held up in the Ministry of
Finance, however, which was trying to hammer out a plan
whereby those holding the debt might get partial repayment
from the GOG. He said that politically influential Greek
construction companies held a significant proportion of the
debt and were trying to use their influence to prevent the
GOG from simply writing it off with out some frm of
repayment. Thus, Ayfantis argued, Greec's failure to settle
Iraq's debt did not reflect any problem with Greek-Iraqi
bilateral relations but rather Greek domestic political
wrangling.
3. (C) COMMENT: This is the first we had heard of Greek
construction interests holding Iraqi debt. Ministry of
Finance officials told us that most of the Iraq debt to
Greece is owed to Hellenic Defense Industries (HDI),a
quasi-state entity. To forgive this debt, according to
MinFin officials, could require the GOG to remunerate HDI for
its claims. As for the politics of settling the debt,
Minister of Finance Alogoskoufis also told Ambassador that
the political will existed to get it done but admitted it was
a complicated matter (ref B).
SPECKHARD
SIPDIS
NEA/I
E.O. 12958: DECL: 05/07/2018
TAGS: EAID ECON EFIN EINV PGOV PREL IZ GR
SUBJECT: IRAQ: GREEK MFA ON ICI AND DEBT FORGIVENESS
POLITICS
REF: A. SECSTATE 43799
B. ATHENS 139
Classified By: A/POLCOUNS JEFF HOVENIER. REASONS 1.4 (B) AND (D).
1. (C) DepPolCouns delivered ref A demarche on the May 29
International Compact with Iraq (ICI) Ministerial to MFA A6
Directorate for Middle East Affairs deputy head Giorgos
Ayfantis. Ayfantis was unable to say definitively which
senior Greek official would attend the Ministerial, but he
believed it would be Deputy FM Doukas, who specializes in
economic affairs.
2. (C) DepPolCouns also discussed with Ayfantis the
settlement of Iraq's outstanding debt with Greece (est. $231
million). Ayfantis said both the Greek Embassy in Baghdad
and the MFA favored forgiving Iraq's debt as a vote of
confidence in the Iraqi government and a way to start over
with a clean slate. The issue was held up in the Ministry of
Finance, however, which was trying to hammer out a plan
whereby those holding the debt might get partial repayment
from the GOG. He said that politically influential Greek
construction companies held a significant proportion of the
debt and were trying to use their influence to prevent the
GOG from simply writing it off with out some frm of
repayment. Thus, Ayfantis argued, Greec's failure to settle
Iraq's debt did not reflect any problem with Greek-Iraqi
bilateral relations but rather Greek domestic political
wrangling.
3. (C) COMMENT: This is the first we had heard of Greek
construction interests holding Iraqi debt. Ministry of
Finance officials told us that most of the Iraq debt to
Greece is owed to Hellenic Defense Industries (HDI),a
quasi-state entity. To forgive this debt, according to
MinFin officials, could require the GOG to remunerate HDI for
its claims. As for the politics of settling the debt,
Minister of Finance Alogoskoufis also told Ambassador that
the political will existed to get it done but admitted it was
a complicated matter (ref B).
SPECKHARD