US embassy cable - 04MADRID2397

UNCLAS MADRID 002397 
 
SIPDIS 
 
FOR EB/ODF ROLAND DEMARCELLUS 
EB/IRAQ MARK KISSEL 
 
E.O. 12958: N/A 
TAGS: EAID, ECON, EFIN, IZ, SP 
SUBJECT: POSITIVE SIGNS ON SPAIN'S IFC AND IRFFI PLEDGES 
 
REF: MADRID 2248 
 
1. Summary: A call to a key contact on Iraq reconstruction 
issues adds additional weight to assurances by high level GOS 
contacts that Spain would honor its Iraq Donors' Conference 
commitments.  Our working level contact predicted the IFC $5 
million and half of the IRFFI $20 million would be disbursed 
by July with the remaining IRFFI $10 million moving later 
this year.  This timeline supports comments made by Secretary 
of State for Economy David Vegara (reftel), and signals that 
positive action is being taken at the working level.  End 
Summary. 
 
2. Our chief contact on Iraq reconstruction, Ministry of 
Economy Technical Advisor for International Finance Ines 
Menendez de Luarca Bellido, confirmed that the approval of 
the $5 million for the IFC Small Business Facility and $20 
million for the IRFFI is moving forward.  Higher ranking 
officials in the Ministry of Economy, including the Secretary 
of State for Economy Vegara (reftel) and the Director General 
for Finance assured us that Spain would live up to its Iraq 
reconstruction pledge.  Menendez' affirmation of these 
statements confirms that the message has reached the working 
level and is being actively pursued. 
 
3. Menendez provided a rough timeline for the disbursements. 
She stated that the the Ministry of Economy had completed its 
internal approval process on the IFC $5 million and the IRFFI 
$20 million.  The next step is the July 8 meeting of the 
interministerial commission that approves all development 
funds.  The disbursement decision will then move to the 
subsequent Council of Ministers meeting.  Approval is 
expected by both groups.  Menendez predicted the IFC $5 
million and $10 million of the IRFFI transfer will be made in 
mid-late July.  The second half of the IRFFI funds should be 
disbursed by the end of the year. 
 
4. We will continue to track this issue, and notify 
Washington as the disbursement process reaches its final 
stages. 
ARGYROS