LEBANON: FINMIN AGREES: USE USG CASH TRANSFER TO

UNCLAS BEIRUT 000358 SIPDIS SENSITIVE CAIRO FOR USAID JOHN POWER AND DAVID CONSIGNY STATE FOR EEB/IFD/ODF DEMARCELLUS NEA/ELA ALLEN L FITZGERALD STATE PASS USTR FRANCESCKI STATE PASS USAID FOR LAUDATO/NANDY/SCOTT TREASURY FOR PARODI/BLEIWEISS/CORREA USDOC FOR 4520/ITA/MAC/ONE NSC FOR SHAPIRO, MCDERMOTT E.O. 12958: N/A TAGS: ECON EAID EFIN PTER LE SUBJECT: LEBANON: FINMIN AGREES: USE USG CASH TRANSFER TO PAY WORLD BANK DEBT ¶1. (U) This is an action request. Please see paragraph 3 below. ¶2. (SBU) In a March 27 phone call with the Ambassador, Finance Minister Mohamad Chatah agreed that the USG use its $50 million cash transfer disbursement, which was triggered by GOL reform of its gas excise tax, to pay World Bank debt. Though Chatah was disappointed that Washington did not approve payment of higher-interest debt owed to other creditors, he said he did not want the disbursement to be a protracted process, and would instruct his staff to work with USAID and the World Bank in setting up the debt payment schedule. He expressed his gratitude for USG assistance. ¶3. (U) Post requests that USAID Cairo contact Finance Ministry contacts to proceed with the disbursement. SISON