Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 03ANKARA1003, DRAFT TERM SHEET FOR TURKEY GRANT/LOAN FACILITY

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #03ANKARA1003.
Reference ID Created Released Classification Origin
03ANKARA1003 2003-02-08 15:18 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Ankara
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 03 ANKARA 001003 
 
SIPDIS 
 
 
SENSITIVE 
 
 
STATE FOR E, EB AND EUR/SE 
TREASURY FOR UNDER SECRETARY TAYLOR 
DEPT PASS USTR - NOVELLI AND MOWERY 
 
 
E.O. 12958: N/A 
TAGS: ECON PREL EAID TU
SUBJECT: DRAFT TERM SHEET FOR TURKEY GRANT/LOAN FACILITY 
 
 
SENSITIVE BUT UNCLASSIFIED.  NOT FOR INTERNET DISTRIBUTION. 
 
 
1.  (SBU) A USG DELEGATION, LED BY TREASURY UNDER SECRETARY 
TAYLOR, AND A GOT DELEGATION, LED BY STATE MINISTER BABACAN, 
REACHED INFORMAL AGREEMENT ON NEARLY ALL ARTICLES IN OUR DRAFT 
TERM SHEET, AFTER INTENSE TALKS FEBRUARY 6 AND 7.  (SEPTEL WILL 
SUMMARIZE CONCERNS RAISED IN THOSE TALKS.) 
 
 
2.  (SBU) SIX BRACKETS REMAIN IN THE TEXT BELOW.  TWO REVOLVE 
AROUND THE ISSUE OF ECONOMIC REFORM CONDITIONALITY (ARTICLE 4 AND 
ARTICLE 7, THIRD TICK).  TWO BRACKETS (THE PREAMBULAR CONDITION 
AND ARTICLE 7, SECOND TICK) NOTE THAT THE TERM "FULL MILITARY 
COOPERATION" NEEDS TO BE DEFINED.  THE LAST TWO BRACKETS (ON THE 
DEFAULT AND PENALTY ARTICLES) WERE REQUESTED BY THE TURKS TO ALLOW 
THEM TO CHECK IF THESE TERMS WERE FULLY CONSISTENT WITH THEIR 
WORLD BANK LOAN DOCUMENTS.  UNDER SECRETARY TAYLOR MADE CLEAR THAT 
THIS WAS AN INFORMAL DOCUMENT FOR DISCUSSION PURPOSES, SUBJECT TO 
FURTHER REVISION, AND THAT FINAL TERMS WOULD BE NEGOTIATED FOR THE 
FORMAL LOAN/GRANT AGREEMENTS. 
 
 
3.  (SBU) BEGIN TEXT OF DRAFT TERM SHEET: 
 
 
TERM SHEET FOR U.S.- TURKEY GRANT/LOAN FACILITY 
 
 
This term sheet outlines the basic structural elements and legal 
and administrative requirements for a grant/loan facility from the 
United States to Turkey. 
 
 
Any economic assistance is predicated upon Turkey's completion of 
its fourth review under the IMF Stand By Arrangement, and upon 
Turkey's full cooperation [to be defined] with the USG military 
operation in Iraq. 
 
 
GENERAL TERMS 
 
 
1.  Form of Assistance 
 
 
A. What will be the form of U.S. assistance? 
 
 
--  U.S. assistance includes military assistance from the Foreign 
Military Financing ("FMF") account and economic assistance 
("Economic Assistance") from the Economic Support Fund ("ESF"). 
This term sheet only addresses the Economic Assistance. 
 
 
--  The funds for Economic Assistance will come from a 2003 
Congressional supplemental appropriation for the Economic Support 
Fund.  The supplemental appropriation will enter into force when 
the Congress passes it and the President signs it. 
 
 
B.  How will the Economic Assistance be divided between loans, 
loan guarantees, and/or grants? 
 
 
--  Economic Assistance will be provided through a flexible 
package (the "Facility") that can be split between grant(s) and 
funding the USG budget/subsidy cost of a loan(s) and/or loan 
guarantee(s), within the parameters of the Credit Reform Act of 
1990  - the amount of any loan(s) or loan guarantee(s) would 
depend on, for example, the exact terms (e.g., interest rates, 
grace periods, disbursement schedule) of the loan(s) and the 
allocated amount from the Facility. 
 
 
--  Turkey would have the right to use part of the appropriations 
to fund the subsidy costs of a loan and/or guarantee, as defined 
in the Credit Reform Act of 1990, and then retain the flexibility, 
at a later date, to use the balance of the appropriations, as long 
as the appropriated funds have not expired under the supplemental 
appropriations law, to fund a grant or, possibly, a loan and/or 
guarantee under different terms.  The total ceiling on loans 
and/or guarantees that would  be made available would be specified 
in the grant/loan agreement. 
 
 
--  To ensure maximum flexibility, the loan/grant agreement would 
have to allow Turkey to adjust the amount and the terms to permit 
the reallocation of unused appropriations for grant(s), loan(s), 
or guarantee(s), as long as the appropriations have not expired 
under the supplemental appropriations law, which would include the 
expiration date, and the loan/guarantee ceiling has not been 
reached. The expiration date will be later than the end of the 
time period for availability of disbursements under the Facility 
as described in Article 7. 
 
 
2.  Purposes 
 
 
--  This Facility will help the Republic of Turkey maintain 
confidence, support the Turkish economy, and contain and offset 
the economic impact of a conflict in Iraq. The Facility should not 
lead to an increase in the overall amount of Turkish debt. 
 
 
--  Any agreement under the Facility will indicate how Turkey will 
use loan and grant funds. 
 
 
 
 
3.  Form and Timing of Disbursements 
 
 
--  Funds would be disbursed over time rather than in one lump- 
sum. 
 
 
--  Grant funds would be available over a [X-month] period.  An 
amount up to [X%] of the grant would be available in the first 
disbursement, with the remaining disbursements to be specified. 
 
 
--  Credit (whether by direct lending or guarantees of private 
lending) would be available over a [X-month] period.  An amount up 
to [X%] of the nominal ceiling on credit exposure would be 
available in the first disbursement, with the remaining 
disbursements to be specified. 
 
 
4.   Economic Conditions Precedent for Disbursement 
 
 
--  Turkey has committed to strong economic policies.  [Any 
disbursement of funds to Turkey would depend on Turkey's 
implementation of these strong economic policies.] 
 
 
--  [In making decisions about disbursements, Turkey's performance 
under programs supported by the international financial 
institutions would be of paramount importance.] 
 
 
5.     Monitoring and Evaluation 
 
 
--  The USG will monitor whether Turkey is meeting the conditions 
set forth in the agreement. 
 
 
--  Turkey and USG officials will have consultation meetings, as 
needed, on Turkey's use of resources under the Facility. 
 
 
--  Turkey will provide, at the request of the USG, all 
information provided to the IMF, including information needed to 
track the use of funds under the Facility. 
 
 
 
 
6.  Disbursement Requests/Reports 
 
 
Turkey will submit a report before it requests each disbursement, 
which will include information such as debt service payments to 
the international financial institutions. 
 
 
7.  Termination of Disbursements to Turkey 
 
 
--  The time period for availability of disbursements under the 
Facility is [X] months.  If Turkey has not drawn the full amount 
available, whether in loans or grants, after [X] months, it would 
not have access to the remaining funds under the Facility. 
 
 
--  If the USG determines that Turkey is not "fully cooperating" 
[to be defined] with the USG on military matters, the USG would 
inform Turkey that it was suspending Turkey's right to obtain 
disbursements.  The agreement could allow for a consultation 
period to resolve differences, and if such differences had not 
been resolved in [X] days, Turkey no longer would be able to draw 
funds from the Facility, and the Facility would terminate. 
 
 
--  Similarly, if Turkey were to fall off track in its economic 
performance [, as discussed in Article 4 above,] the USG would 
inform Turkey that it was suspending Turkey's right to obtain 
disbursements.   The agreement could allow for a consultation 
period to resolve differences, and if such differences had not 
been resolved in [X] days, Turkey no longer would be able to draw 
funds from the Facility, and the Facility would terminate. 
 
 
LOAN TERMS 
 
 
In addition, the following terms will need to be finalized for any 
loan agreement: 
 
 
8.  Maturity Date 
 
 
For each disbursement, [X] years from the date of disbursement 
with a [X year] grace period on repayments of principal. 
 
 
9.  Interest Rate 
 
 
The interest rate for all disbursements within a loan would be 
fixed at the time of the first disbursement of that loan. 
 
 
10.  Repayments 
Repayments of principal (after the grace period ends) and payments 
of interest (beginning 6 months after the first disbursement is 
made) would be made semiannually. 
 
 
11.  Prepayment of Principal 
Turkey could prepay principal without penalty. 
 
 
12.  [Default/Acceleration of Repayments 
 
 
--  The USG, in its sole discretion, could declare (some or) all 
outstanding loan disbursements, together with accrued and unpaid 
interest, to be due and payable if Turkey (a) provides materially 
incorrect representations or warranties, (b) takes actions to 
undermine the objectives of the loan agreement (as determined by 
the USG), (c) fails to comply with covenants such as information- 
sharing (see article 6 above), or (d) is in payment default under 
its IMF or World Bank obligations.] 
 
 
13.  [PENALTIES 
 
 
--  In the event that Turkey fails to meet repayment terms, it 
would lose access to all future USG assistance (e.g. EXIM Bank 
loans, Foreign Assistance Act grants).  To the extent that 
undisbursed funds remain in the Facility, Turkey's access to these 
funds would also end. 
 
 
--  In addition, penalty interest at [x] rate would also be 
assessed on overdue and unpaid principal/interest payments.] 
 
 
14.  Dispute Settlement 
 
 
The GOT and the USG will agree to submit to the jurisdiction of 
the federal courts in the Southern District of New York. The 
agreement will specify that it should be construed in accordance 
with New York law. 
 
 
15.  Other Legal Provisions 
 
 
--  The USG will require that the agreement contain negative 
pledge and pari passu clauses to ensure that Turkey does not grant 
any other creditor preferential treatment. 
 
 
--  The USG will require legal opinions from Turkish private and 
government counsel that the GOT's obligations under the agreement 
are in full accord with Turkish law. 
 
 
4.  (SUB) End Text of Draft Term Sheet. 
 
 
PEARSON