Identifier
Created
Classification
Origin
08TOKYO2377
2008-08-29 07:47:00
CONFIDENTIAL
Embassy Tokyo
Cable title:
JBIC AGREES TO RESCHEDULE IRAN LOAN
how-toVZCZCXRO1411 OO RUEHBC RUEHDE RUEHDIR RUEHKUK DE RUEHKO #2377 2420747 ZNY CCCCC ZZH O 290747Z AUG 08 FM AMEMBASSY TOKYO TO RUEHC/SECSTATE WASHDC IMMEDIATE 6902 INFO RUCNIRA/IRAN COLLECTIVE IMMEDIATE RUEHNH/AMCONSUL NAHA IMMEDIATE 1970 RUEHFK/AMCONSUL FUKUOKA IMMEDIATE 9607 RUEHKSO/AMCONSUL SAPPORO IMMEDIATE 0188 RUEHOK/AMCONSUL OSAKA KOBE IMMEDIATE 3348 RUEATRS/TREASURY DEPT WASHDC IMMEDIATE RHEHAAA/NSC WASHDC IMMEDIATE RHMFISS/USFJ IMMEDIATE RUEAIIA/CIA WASHDC IMMEDIATE
C O N F I D E N T I A L TOKYO 002377
SIPDIS
TREASURY FOR TFI/DUVIVIER, IA/WINSHIP
E.O. 12958: DECL: 08/29/2018
TAGS: PREL EPET IR JA
SUBJECT: JBIC AGREES TO RESCHEDULE IRAN LOAN
Classified By: James P. Zumwalt, Charge d'Affaires, a.i., per 1.4 (b/d)
C O N F I D E N T I A L TOKYO 002377
SIPDIS
TREASURY FOR TFI/DUVIVIER, IA/WINSHIP
E.O. 12958: DECL: 08/29/2018
TAGS: PREL EPET IR JA
SUBJECT: JBIC AGREES TO RESCHEDULE IRAN LOAN
Classified By: James P. Zumwalt, Charge d'Affaires, a.i., per 1.4 (b/d)
1. (C) The Japan Bank for International Cooperation (JBIC)
has two advance facility agreements with the Naft Iran
Intertrade Company (NICO),a subsidiary of the National Iran
Oil Company. Under these agreements made in 2001 and 2004,
JBIC extended loans worth $4.2 billion to NICO, and NICO
agreed repay the loans with oil (with Japanese oil companies
subsequently purchasing the oil from JBIC). Some $2.8
billion of these loans remain, and in July NICO approached
JBIC and asked to reschedule payments for $1.2 billion, MOFA
Second Middle East Division Deputy Director Motosada Matano
told Embassy Tokyo. NICO sought the rescheduling because it
is currently in "financial trouble" due to a gas development
project that has encountered difficulties, Matano explained.
2. (C) After some consideration, the Japanese Government
decided to allow the rescheduling, Matano continued. The
factors behind this decision were that it was not a new
investment and did not violate UNSCR 1803. Furthermore, not
agreeing to reschedule the loan could cause NICO to fail,
"and JBIC would never get repaid," Matano said. Regardless
Japan will continue its policy of pressuring Iran on its
nuclear program. Japan and Iran signed the agreement in
Lausanne on August 26, and so far there has been no press,
Matano said.
ZUMWALT
SIPDIS
TREASURY FOR TFI/DUVIVIER, IA/WINSHIP
E.O. 12958: DECL: 08/29/2018
TAGS: PREL EPET IR JA
SUBJECT: JBIC AGREES TO RESCHEDULE IRAN LOAN
Classified By: James P. Zumwalt, Charge d'Affaires, a.i., per 1.4 (b/d)
1. (C) The Japan Bank for International Cooperation (JBIC)
has two advance facility agreements with the Naft Iran
Intertrade Company (NICO),a subsidiary of the National Iran
Oil Company. Under these agreements made in 2001 and 2004,
JBIC extended loans worth $4.2 billion to NICO, and NICO
agreed repay the loans with oil (with Japanese oil companies
subsequently purchasing the oil from JBIC). Some $2.8
billion of these loans remain, and in July NICO approached
JBIC and asked to reschedule payments for $1.2 billion, MOFA
Second Middle East Division Deputy Director Motosada Matano
told Embassy Tokyo. NICO sought the rescheduling because it
is currently in "financial trouble" due to a gas development
project that has encountered difficulties, Matano explained.
2. (C) After some consideration, the Japanese Government
decided to allow the rescheduling, Matano continued. The
factors behind this decision were that it was not a new
investment and did not violate UNSCR 1803. Furthermore, not
agreeing to reschedule the loan could cause NICO to fail,
"and JBIC would never get repaid," Matano said. Regardless
Japan will continue its policy of pressuring Iran on its
nuclear program. Japan and Iran signed the agreement in
Lausanne on August 26, and so far there has been no press,
Matano said.
ZUMWALT