Cablegate: Nigeria: Gon Seeks Meeting with Paris Club
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS ABUJA 003022
TREASURY FOR SONAL SHAW AND MATT TURNER
E.O. 12958: N/A
TAGS: ECON EFIN NI
SUBJECT: NIGERIA: GON SEEKS MEETING WITH PARIS CLUB
1. This cable contains an action request in para 4.
2. EconOff spoke November 28 with Debt Management Office
(DMO) Director-General Akin S. Arikawe. Arikawe expressed
concern over FY2002 Paris Club payments. Specifically, he
said the FY2002 proposed budget allocates N187 billion (USD
1.55 billion at a rate of N120:USD1) for external debt
servicing, down from USD 2 billion in FY2001 due to lower oil
prices and a smaller OPEC quota. Of the USD 1.55 billion,
the DMO estimates the GON will pay USD 834 million to
non-Paris Club creditors, including multilateral institutions
and the London Club. FY2002 Paris Club payments would,
therefore, equal roughly USD 720 million, representing less
than one-third of payments due for the year. According to
DMO calculations, the GON will owe a total of USD 2.268
billion to the Paris Club in FY2002. This figure includes
overdue arrears from 2001.
3. Arikawe said the GON wants to meet soon with the Paris
Club to discuss GON concerns and receive feedback from the
creditors. Arikawe has sent the same request through both
the IMF and World Bank to Paris Club countries.
4. Action Request: Post suggests that Washington consider the
merits of such a meeting and inform Post soonest.