VZCZCXRO3268
RR RUEHROV
DE RUEHAE #0197 0950755
ZNR UUUUU ZZH
R 040755Z APR 08
FM AMEMBASSY ASMARA
TO RUEHC/SECSTATE WASHDC 9586
INFO RUCNIAD/IGAD COLLECTIVE
RUEHVT/AMEMBASSY VALLETTA 0001
RHMFISS/CDR USCENTCOM MACDILL AFB FL
RUEAIIA/CIA WASHDC
RUEPADJ/CJTF-HOA J2X CAMP LEMONIER DJ
RUEKDIA/DIA WASHDC
RUMICEA/JICCENT MACDILL AFB FL
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC
UNCLAS ASMARA 000197
SIPDIS
SIPDIS
SENSITIVE
LONDON AND PARIS FOR AFRICA WATCHERS
DEPT FOR AF/E
E.O. 12958: N/A
TAGS: PGOV EFIN EAID ER
SUBJECT: GSE CHRONICALLY LATE REPAYING WORLD BANK
1. (SBU) World Bank (WB) Country Manager for Eritrea Chris Lovelace
(strictly protect) told Emboff the Government of the State of
Eritrea (GSE) came within mere days of being 60 days past due on a
repayment to the WB for the second consecutive time. The first late
payment was made "less than a week" before the deadline in December
2007; the second late payment was made on day 58 in mid-March.
Payments past due by 60 days trigger a freeze on new programs,
official notifications sent to creditors, and immediate repayment
demands for all outstanding payments due. Lovelace was told by an
official in the Finance Ministry the GSE did not have reserves
available to make the payments, leading him to believe the trend to
continue.
2. (SBU) Post has received reports indicating the GSE and People's
Front for Democracy and Justice (PFDJ) sometimes draw upon hard
currency reserves held in European banks to make payments in extreme
circumstances. These funds are reportedly hand-carried back to
Eritrea by senior GSE/PFDJ officials.
MCMULLEN