MALDIVIAN PRESIDENT NASHEED REQUESTS $8-10 MILLION

C O N F I D E N T I A L COLOMBO 001076 SIPDIS DEPARTMENT FOR EEB/OMA BRIANA SAUNDERS DEPARTMENT FOR SCA/RA TCOLEMAN DEPARTMENT FOR EEB/ODF TREASURY FOR ANNE ALIKONIS E.O. 12958: DECL: 11/29/2018 TAGS: EFIN PREL ECON EAID MV SUBJECT: MALDIVIAN PRESIDENT NASHEED REQUESTS $8-10 MILLION EMERGENCY BRIDGE LOAN FROM US REF: A. A) COLOMBO 1009 ¶B. (B) COLOMBO 1017 ¶C. (C) COLOMBO 1075 Classified By: Ambassador Robert O. Blake, Jr. for reasons 1.4 (b) and (d). ¶1. (U) This is an Action Request. Please see paragraph 5. ¶2. (C) Maldivian President Nasheed telephoned Ambassador the morning of November 27 to request a USG loan of 8 to 10 million U.S. dollars to help bridge a financial shortfall the Maldivian Government faces to meet its budgetary obligations at the end of the month of November. Nasheed said these were problems he had inherited from the previous Government. "If we can survive the next two months we should be okay," he told the Ambassador. Ambassador asked if Maldives had approached the IMF, which was the customary source of funding in such situations. Nasheed responded that the Government had approached the IMF, but had been told it would take "a few months" before IMF funding could be approved. Similarly, the World Bank had told Maldives they could not provide short-term assistance. ¶3. (C) Ambassador noted that it would be all but impossible for the U.S. Government to do anything before the end of November with only one working day left in the month. He also cautioned that America's financial officials naturally are preoccupied with America's own financial situation. Nonetheless, the Ambassador undertook to check with the Departments of Treasury and State to see what advice and/or assistance the U.S. Government might be able to provide. Comment and Action Request -------------- ¶4. (C) As noted ref a, Nasheed took office November 11 following Maldives' first-ever multi-party democratic elections and 30 years of rule by the same head of state. The U.S. has a strategic interest in maintaining and expanding close relations with this reforming, moderate Islamic nation located on important navigation routes between southeast Asia and the Persian Gulf. The Maldives has provided important military, law enforcement, and counter-terrorism cooperation that the new President has pledged to continue. Any advice or assistance the USG can provide to respond to President Nasheed's request would help advance our interests and would be invaluable in helping Maldives overcome its short-term financial problems. Ref C provides additional details on the Maldives budget. Post also encourages U.S. Government support to Maldivian requests for assistance from international financial institutions. ¶5. (C) Post requests immediate guidance by close of business November 28 to respond to President Nasheed's request. Guidance should be sent on UNCLASS directly to Ambassador to facilitate a response over the weekend. Thank you. Blake