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 08BEIRUT581, LEBANON: BANKERS VALUE U.S. ASSISTANCE TO LEBANON

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. #08BEIRUT581.
Reference ID Created Released Classification Origin
08BEIRUT581 2008-04-30 11:36 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Beirut
VZCZCXRO1899
RR RUEHAG RUEHBC RUEHDE RUEHDF RUEHIK RUEHKUK RUEHLZ RUEHROV
DE RUEHLB #0581/01 1211136
ZNR UUUUU ZZH
R 301136Z APR 08
FM AMEMBASSY BEIRUT
TO RUEHC/SECSTATE WASHDC 1674
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RHEHNSC/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC
UNCLAS SECTION 01 OF 02 BEIRUT 000581 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
STATE FOR NEA/ELA 
TREASURY FOR MNUGENT AND SBLEIWEISS 
OPIC FOR RMOSBACHER/JSIMON/RDRUMHELLER/CHOSTETLER 
EEB FOR EDIBBLE/RDEMARCELLUS 
NSC FOR ABRAMS/SINGH/YERGER/DEMOPOLOUS 
 
E.O. 12958: N/A 
TAGS: EAID ECON EFIN ENIV PGOV SY SA LE
SUBJECT: LEBANON:  BANKERS VALUE U.S. ASSISTANCE TO LEBANON 
 
SUMMARY: 
------- 
 
1. (SBU) Senior officials from a cross-section of Lebanese banks 
told Charge that USG financial assistance, especially where it shows 
confidence in the banking system, is critical.  OPIC loans, managed 
by Citibank, of $108 in early 2007 and $153 in 2008, are popular 
with the banks and the borrowers.  In the same way the $1 billion 
deposit promised by Saudi Arabia is necessary to boost confidence in 
the Lebanese financial situation and reduce the cost to the GOL of 
new borrowing.  Bankers also pointed out that USAID micro financing 
offers a cheaper alternative to Hizballah-backed loans, and should 
be continued.  Lebanese banks, undervalued and with limited 
opportunities in Lebanon, are rapidly expanding outside of Lebanon, 
and Syria is proving to be an attractive and profitable market.  End 
summary. 
 
LEBANESE BANKS STEADILY 
INCREASE IN VALUE 
----------------- 
 
2. (SBU) Charge, Econoff, and Econstaff met on April 29 with senior 
officials from the Lebanese Banking Control Commission (BCC), and a 
cross-section of important Lebanese banks.  Bank Audi, Byblos Bank, 
BLOM Bank, Fransabank, Lebanese Canadian Bank, and Intercontinental 
Bank were all represented.  Lebanese banks are proud of being the 
only banks in the region left unscathed by the global sub-prime 
crisis, due to an early Central Bank of Lebanon (CBL) circular 
banning investments in sub-prime instruments.  These banks have high 
liquidity and a low cost of deposits.  This allows them to offer 
interest rates now above LIBOR, and that, plus the continuing 
confidence by investors, means that deposits are growing steadily. 
With only small dips following the Hariri assassination in early 
2005 and the July 2006 war, deposits have grown from $43 billion in 
early 2003 to $69 million by the end of April 2008.  Since the 
beginning of what Bank Audi refers to as "domestic political 
bickering" in early 2007, deposits have increased by $9 billion. 
 
OPIC LOANS POPULAR, AND 
CHEAPER THAN "HIZBO-BANK" 
-------------------- 
 
3. (SBU) According to the luncheon participants, Lebanese banking is 
successful due to investor confidence, and outside enhancements, 
such as U.S. OPIC funds and the deposits of Saudi Arabia and Kuwait 
in the CBL during the July 2006 war, boost that confidence.  The 
OPIC loans, $108 in 2007 and $153 in 2008, are not large or even 
critical; Lebanese banks are experiencing very high liquidity. 
However, they are a concrete measure of investor confidence, as well 
as being a popular instrument with banks and borrowers alike.  Like 
the USAID-funded micro credit, these loans to small and medium-size 
enterprises (SME) can offer a cheaper alternative to what the 
bankers referred to as "Hizbo-bank," or Hizballah. 
 
SAUDI DEPOSIT CRITICAL 
FOR CONFIDENCE 
-------------- 
 
4. (SBU) In 2008 the GOL will need $3 billion in foreign currency 
financing.  Lebanese banks will provide about 90 percent of that 
through Euro-bond issues, but the quality of the credit package they 
can provide will be superior if the elusive $1 billion deposit 
promised by the Saudis earlier this year is implemented.  None of 
the bankers know why the Saudis have not acted on their promise to 
PM Siniora, nor are there even rumors of the cause.  However, all 
believe that the deposit, which will be an interest-bearing deposit 
in the CBL, will both cut borrowing costs and enhance investor 
confidence significantly.  BCC Chairman Walid Alameddine bluntly 
asked Charge to do what she could to convince the Saudis to make 
good on their promise, and quickly. 
 
SYRIA IS AN ATTRACTIVE 
MARKET FOR BANKS 
---------------- 
 
5. (SBU) Lebanese banks, which "suffer" from too much liquidity and 
few investment opportunities within Lebanon, are expanding rapidly 
outside of the country.  One fertile territory is Syria, open now to 
private banking.  They pointed out that the Syrian diaspora is twice 
as wealthy as the Lebanese diaspora, and the latter provides most of 
the foreign investment in Lebanon and 25 percent of the GDP.  It is 
 
BEIRUT 00000581  002 OF 002 
 
 
the bankers' opinion that the Syrians, anxious to replace dwindling 
income from oil and agriculture, are looking for and finding foreign 
direct investments (FDI.)  This is an opportunity cost to Lebanon, 
and in 2007 that loss amounted to $3-4 billion FDI.  Bankers point 
out that the GOS follows the "Chinese model" whereby the government 
does not interfere in banking. 
 
BANKS UNDERVALUED, 
COULD EXPLODE IN VALUE 
------------------ 
 
6. (SBU) Bankers point out that Lebanese banks, valued at only 1.5 
times book, are undervalued, and handicapped by the political 
situation.  Stability would allow for an explosion, to more than 
twice the $7.5 billion in book value.  Even a slight improvement in 
outlook, such as this week's announcement of a visit by Arab League 
SYG Amr Moussa, can cause an increase in the value of bank GDRs.  In 
fact, according to the bankers, Moussa has a bigger impact on bank 
share value than on solving the political crisis. 
 
COMMENT 
------- 
 
7. (SBU) It is generally understood that the Lebanese banks carry 
the Lebanese economy; if bankers at this level believe that the 
promised Saudi deposit is critical, no effort should be spared in 
making it a reality.  End comment. 
 
SISON