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Cablegate: Amis Non-Payment Jeopardizes Rwandan Involvement

VZCZCXRO2958
PP RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMA RUEHMR RUEHPA RUEHRN RUEHTRO
DE RUEHLGB #0406 1220946
ZNR UUUUU ZZH
P 020946Z MAY 07
FM AMEMBASSY KIGALI
TO RUEHC/SECSTATE WASHDC PRIORITY 4090
INFO RUEHZO/AFRICAN UNION COLLECTIVE PRIORITY
RUEHJB/AMEMBASSY BUJUMBURA 0051
RUEHDR/AMEMBASSY DAR ES SALAAM 0864
RUEHKM/AMEMBASSY KAMPALA 1591
RUEHKI/AMEMBASSY KINSHASA 0206
RUEHNR/AMEMBASSY NAIROBI 0851
RUEHFR/AMEMBASSY PARIS 0229
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS KIGALI 000406

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EAID ECON EFIN MOPS PGOV PREL RW
SUBJECT: AMIS NON-PAYMENT JEOPARDIZES RWANDAN INVOLVEMENT
IN DARFUR

REF: KIGALI 340

1. (U) The African Union continues to owe the GOR
approximately USD 20 million, which amounts to 0.7% of GDP,
for funds expended in the African Union Mission in Sudan
(AMIS).

2. (SBU) The IMF, during the latest Poverty Reduction Growth
Facility (PRGF) mission to Rwanda, advised the GOR to
consider reducing their engagement and to eventually pull out
of the African Union (AU) mission, as this increased debt
threatens Rwanda's macroeconomic stability.

3. (SBU) In the new memorandum of understanding (MOU) the GOR
will sign with the IMF on the PRGF, the Minister of Finance
has agreed to cut spending (presumably to match the missing
USD 20 million) if the AU does not honor its reimbursement
obligation.

4. (SBU) COMMENT. Although there does not appear to be an
IMF-imposed timeline for action by the GOR, the non-payment
from the AU for Rwanda's peace keeping mission in Darfur
could have grave implications for Rwanda and AMIS. Either
the GOR will have to cut the equivalent of 3% of their
already-small budget or the GOR will end up withdrawing its
three battalions from Darfur.
ARIETTI

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