Cablegate: Turkey Receives Partial Payment From Somo
This record is a partial extract of the original cable. The full text of the original cable is not available.
161544Z Dec 05
UNCLAS ANKARA 007399
SIPDIS
SENSITIVE
E.O. 12958: N/A
TAGS: EPET PREL EFIN TU IZ
SUBJECT: TURKEY RECEIVES PARTIAL PAYMENT FROM SOMO
REF: A. ANKARA 6952
B. ANKARA 6870
SENSITIVE BUT UNCLASSIFIED
1. (SBU) MFA confirms that on December 14 SOMO made a
partial payment of $150 million on its arrears to its Turkish
fuel suppliers. Before the payment, arrears (amounts more
than 45 days past due) exceeded $600 million out of total
debt of over $800 million. With this one-quarter payment
SOMO appears to have avoided (or temporarily postponed)
another potential fuel product shipment stoppage, which has
occurred in the past whenever arrears exceeded around $800
million. Turkish suppliers remain frustrated about SOMO's
lack of communication and stringing along of their
outstanding debt (refs). Suppliers have long complained to
Embassy about their inability to procure new product to ship
in the face of working capital tied up in debt they are
forced to hold by SOMO's nonpayment. Suppliers have pointed
out that they could in fact increase their fuel shipment if
there were adequate financing available.
2. (SBU) Post has appreciated Embassy Baghdad's efforts on
this issue and understands that central budget problems are
the source of SOMO's untimely payment history. The next
Iraqi government will have to come to terms with this issue.
Despite the supportive position of the GOT and the
persistence of Turkish suppliers to do business with and in
Iraq, they cannot sustain fuel shipments to SOMO without
timely payments.
WILSON