Identifier
Created
Classification
Origin
09BEIRUT422
2009-04-09 17:39:00
CONFIDENTIAL
Embassy Beirut
Cable title:
LEBANON: GOL SIGNS 45 MILLION EURO LOAN WITH
how-toVZCZCXRO4134 PP RUEHAG RUEHBC RUEHDE RUEHKUK RUEHROV RUEHSR DE RUEHLB #0422 0991739 ZNY CCCCC ZZH P 091739Z APR 09 FM AMEMBASSY BEIRUT TO RUEHC/SECSTATE WASHDC PRIORITY 4659 INFO RUEHEE/ARAB LEAGUE COLLECTIVE RUCNMEM/EU MEMBER STATES COLLECTIVE RUCNDT/USMISSION USUN NEW YORK 3655 RUEHNO/USMISSION USNATO 3855 RHMFISS/CDR USCENTCOM MACDILL AFB FL RHEHAAA/NSC WASHDC RUEKJCS/SECDEF WASHDC
C O N F I D E N T I A L BEIRUT 000422
SIPDIS
DEPT FOR NEA/FO, NEA/ELA
STATE PASS USTR FRANCESCKI
STATE PASS USAID FOR LAUDATO/NANDY/SCOTT
TREASURY FOR U/S LEVEY, DAS BAUKOL
TREASURY ALSO FOR PARODI/BLEIWEISS/AHERN/MENDELSOHN/DOUCETTE
USDOC FOR 4520/ITA/MAC/ONE
NSC FOR MCDERMOTT
P FOR DRUSSELL
USUN FOR WOLFF/GERMAIN/SCHEDLBAUER
NSC FOR SHAPIRO, MCDERMOTT
E.O. 12958: DECL: 04/09/2019
TAGS: EFIN PREL PGOV PTER LE IR
SUBJECT: LEBANON: GOL SIGNS 45 MILLION EURO LOAN WITH
TREASURY-DESIGNATED IRANIAN BANK
Classified By: Ambassador Michele J. Sison for reasons 1.4 (b) and (d).
SUMMARY
--------
C O N F I D E N T I A L BEIRUT 000422
SIPDIS
DEPT FOR NEA/FO, NEA/ELA
STATE PASS USTR FRANCESCKI
STATE PASS USAID FOR LAUDATO/NANDY/SCOTT
TREASURY FOR U/S LEVEY, DAS BAUKOL
TREASURY ALSO FOR PARODI/BLEIWEISS/AHERN/MENDELSOHN/DOUCETTE
USDOC FOR 4520/ITA/MAC/ONE
NSC FOR MCDERMOTT
P FOR DRUSSELL
USUN FOR WOLFF/GERMAIN/SCHEDLBAUER
NSC FOR SHAPIRO, MCDERMOTT
E.O. 12958: DECL: 04/09/2019
TAGS: EFIN PREL PGOV PTER LE IR
SUBJECT: LEBANON: GOL SIGNS 45 MILLION EURO LOAN WITH
TREASURY-DESIGNATED IRANIAN BANK
Classified By: Ambassador Michele J. Sison for reasons 1.4 (b) and (d).
SUMMARY
--------------
1. (U) The GOL signed a Memorandum of Understanding (MOU)
March 12 with the Export Development Bank of Iran for the
reactivation of a 45 million euro loan signed in 2003. The
Ambassador queried Finance Minister Chatah on this
development April 7. End summary.
2. (SBU) The visit of Lebanese President Michel Sleiman to
Iran in November 2008 reinvigorated links between the
Lebanese and Iranian governments and led to a flurry of
visits and bilateral economic activity. In February 2009,
Lebanese Minister of Industry Ghazi Zoyater, accompanied by a
business delegation, visited Tehran to promote business
linkages between industrialists in the two countries. In
March, the Joint Lebanese-Iranian Economic Committee met in
Beirut, resulting in an MOU on bilateral relations between
Lebanese Minister of Economy Mohammed Safadi and Iranian
Minister of Housing Mohammad Sa'idi Kiya.
3. (SBU) Most recently, on March 12, Finance Minister
Mohammad Chatah and the Director of the Export Development
Bank of Iran signed an MOU that led to the reactivation of a
45 million euro loan signed in 2003. As a result, the
Lebanese Council for Reconstruction and Development (CDR)
will contract projects tied to this loan in the electricity,
water, and waste water sectors, according to CDR Director of
Funding Dr. Wafaa Charafeddine.
4. (SBU) This loan is the first tranche of a $100 million
Iranian pledge accepted in 2001 by then-Finance Minister and
current Prime Minister Fouad Siniora for development projects
all over Lebanon. Iran finally agreed to amend the MOU,
stalled over a technicality, because it wants to build a
direct relationship with the GOL "for its own political
reasons," an apparent reference to building good
relationships with Arab countries.
5. (C) In an April 7 meeting, the Ambassador asked Chatah
about the March 12 loan reactivation, noting that the bank is
designated by the U.S. Treasury under E.O. 13382 for
providing or attempting to provide financial services to
Iran's Minister of Defense and Armed Forces Logistics.
Chatah said the issue had been a complete surprise to him,
and that he had happened upon the Iranian delegation on March
11 at the PM's office and was shocked to learn they intended
to sign an MOU at his ministry the following day. When he
learned about the designation, Chatah said he contacted the
governor of the Central Bank of Lebanon to be sure there was
no U.S. currency involved. The Ambassador noted that a loan
of this magnitude certainly raised questions. Chatah
acknowledged the Ambassador's point, and promised to follow
up on where the loan reactivation stands.
SISON
SIPDIS
DEPT FOR NEA/FO, NEA/ELA
STATE PASS USTR FRANCESCKI
STATE PASS USAID FOR LAUDATO/NANDY/SCOTT
TREASURY FOR U/S LEVEY, DAS BAUKOL
TREASURY ALSO FOR PARODI/BLEIWEISS/AHERN/MENDELSOHN/DOUCETTE
USDOC FOR 4520/ITA/MAC/ONE
NSC FOR MCDERMOTT
P FOR DRUSSELL
USUN FOR WOLFF/GERMAIN/SCHEDLBAUER
NSC FOR SHAPIRO, MCDERMOTT
E.O. 12958: DECL: 04/09/2019
TAGS: EFIN PREL PGOV PTER LE IR
SUBJECT: LEBANON: GOL SIGNS 45 MILLION EURO LOAN WITH
TREASURY-DESIGNATED IRANIAN BANK
Classified By: Ambassador Michele J. Sison for reasons 1.4 (b) and (d).
SUMMARY
--------------
1. (U) The GOL signed a Memorandum of Understanding (MOU)
March 12 with the Export Development Bank of Iran for the
reactivation of a 45 million euro loan signed in 2003. The
Ambassador queried Finance Minister Chatah on this
development April 7. End summary.
2. (SBU) The visit of Lebanese President Michel Sleiman to
Iran in November 2008 reinvigorated links between the
Lebanese and Iranian governments and led to a flurry of
visits and bilateral economic activity. In February 2009,
Lebanese Minister of Industry Ghazi Zoyater, accompanied by a
business delegation, visited Tehran to promote business
linkages between industrialists in the two countries. In
March, the Joint Lebanese-Iranian Economic Committee met in
Beirut, resulting in an MOU on bilateral relations between
Lebanese Minister of Economy Mohammed Safadi and Iranian
Minister of Housing Mohammad Sa'idi Kiya.
3. (SBU) Most recently, on March 12, Finance Minister
Mohammad Chatah and the Director of the Export Development
Bank of Iran signed an MOU that led to the reactivation of a
45 million euro loan signed in 2003. As a result, the
Lebanese Council for Reconstruction and Development (CDR)
will contract projects tied to this loan in the electricity,
water, and waste water sectors, according to CDR Director of
Funding Dr. Wafaa Charafeddine.
4. (SBU) This loan is the first tranche of a $100 million
Iranian pledge accepted in 2001 by then-Finance Minister and
current Prime Minister Fouad Siniora for development projects
all over Lebanon. Iran finally agreed to amend the MOU,
stalled over a technicality, because it wants to build a
direct relationship with the GOL "for its own political
reasons," an apparent reference to building good
relationships with Arab countries.
5. (C) In an April 7 meeting, the Ambassador asked Chatah
about the March 12 loan reactivation, noting that the bank is
designated by the U.S. Treasury under E.O. 13382 for
providing or attempting to provide financial services to
Iran's Minister of Defense and Armed Forces Logistics.
Chatah said the issue had been a complete surprise to him,
and that he had happened upon the Iranian delegation on March
11 at the PM's office and was shocked to learn they intended
to sign an MOU at his ministry the following day. When he
learned about the designation, Chatah said he contacted the
governor of the Central Bank of Lebanon to be sure there was
no U.S. currency involved. The Ambassador noted that a loan
of this magnitude certainly raised questions. Chatah
acknowledged the Ambassador's point, and promised to follow
up on where the loan reactivation stands.
SISON