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