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Brooke F Adams  11/14/2006 11:37:14 AM  From  DB/Inbox:  Brooke F Adams

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C O N F I D E N T I A L        TRIPOLI 00648

SIPDIS
CXCAIRO:
    ACTION: ECON
    INFO:   PA POL IPS FCS FAS DCM AMB AID MGT

DISSEMINATION: ECON
CHARGE: PROG

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INFO RUEHTRO/AMEMBASSY TRIPOLI 1583
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHAD/AMEMBASSY ABU DHABI 0009
RUEHMK/AMEMBASSY MANAMA 0002
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RUEHLO/AMEMBASSY LONDON 0478
RUEHFR/AMEMBASSY PARIS 0292

C O N F I D E N T I A L SECTION 01 OF 02 TRIPOLI 000648 
 
SIPDIS 
 
TREASURY FOR DAN HARRIS, DEPARTMENT FOR NEA/MAG, NEA/PI 
 
E.O. 12958: DECL:  11/10/2016 
TAGS: ECON ECIN EFIN LY
SUBJECT: LIBYAN CENTRAL BANK ESTABLISHING NEW TRAINING INSTITUTE 
 
REF: TRIPOLI 561 
 
CLASSIFIED BY: Elizabeth Fritschle, Pol/Econ Chief, United 
States Embassy, DOS. 
REASON: 1.4 (b), (d) 
¶1. (U) See action request, Para. 7. 
 
¶2.  (U)  The Libyan Central Bank is launching a new training 
center to improve employee skills throughout the banking sector, 
and its director is open to U.S. offers of assistance.  Pol/Econ 
Chief and Econoff met with the Libyan Central Bank on the 
afternoon of November 6 to discuss the scope and direction of 
Central Bank training initiatives and offer appropriate U.S. 
assistance.  Dr. Omar Bushallah, General Manager of the nascent 
Institute of Banking and Financial Studies was joined by Saleh 
Keshlaf, Director of the Central Bank Governor's Office (chief 
of staff equivalent)  for the discussion.  Also present were two 
representatives from the McKinsey Group, which is currently 
engaged in a cooperative study with the Central Bank to upgrade 
and privatize the Libyan banking system (see Reftel). 
 
¶3.  (U)  The Libyan Central Bank has just begun the process of 
standing up the Institute of Banking and Financial Studies, 
which was established by a decree from the General People's 
Committee Secretariat in late October.  Although its bylaws are 
still being drafted, it has been decided that the Institute will 
replace the existing Central Bank Training Center.  Dr. 
Bushallah is leading this effort at the Central Bank, and is 
developing a two-year training program encompassing three main 
skill areas: English language, computer science and 
industry-specific technical training.  This comprehensive course 
of instruction is intended to be a mandatory certification 
program for all new employees of Libyan banks.  Training 
programs for existing employees will also be developed in time. 
Dr. Bushallah declared that his Institute will be totally run by 
the Central Bank, in tandem with similar programs being 
developed by the General People's Committee for Finance or the 
General People's Committed for Manpower, Training and Employment. 
 
--------------------------------------- 
An Institute "Matching Our Ambitions" 
--------------------------------------- 
 
¶4. (U)   Dr. Bushallah allowed that the current Central Bank 
training center was modest and functional, but he looked forward 
to being able to guide visitors through a brand-new facility 
that was "something matching our ambitions."  He rejected a 
suggestion that Libyans could take advantage of excellent 
training programs already available in other Arabic-speaking 
countries.  The current plan calls for the establishment of a 
training campus, complete with residence halls, sports 
facilities, auditoriums and housing for visiting trainers. 
Until that facility becomes reality, the Central Bank will begin 
the transition using existing infrastructure.  In theory, all of 
Libya's state banks will be obligated to provide operational 
funding for the new Institute, their required share being 
determined based on the number of employees on staff.  The 
Central Bank will also incorporate the national banks at a 
senior level, as their general managers will be required to 
serve on the Institute's advisory council.  Dr. Bushallah noted 
that the Central Bank is already providing English language 
training to 500 banking sector employees, and hoped to expand 
this program.  The Bank is currently employing six English 
language trainers contracted through Berlitz in Manchester, UK, 
placing them at its Tripoli, Benghazi and Sebha branch offices. 
Other part-time instructors have been culled from the Libyan 
university system. 
 
--------------------------------------------- --- 
Welcomes U.S. Government Cooperation and Other Training 
Opportunities 
--------------------------------------------- --- 
 
¶5.  (C)  Dr. Bushallah noted that he intends to generally model 
the Institute on the efforts of the GCC states, developing a 
highly institutionalized, vice outsourced, national training 
model.  He stressed that the Central Bank is open to the best 
ideas from around the world, and is not wedded to a single 
training model.  However, while the Central Bank was open to new 
ideas, his intention is that all banking sector employees will 
be required to complete the Libyan course before being eligible 
for training overseas.  Pol/Econ Chief described numerous U.S. 
training opportunities that were available to the Bank, 
highlighting the financial sector service reform programs 
available through MEPI and the December 11-13 conference at the 
Federal Reserve Bank of New York under the U.S.-Middle 
East/North Africa Private Sector Dialogue (U.S.-MENA PSD).  Dr. 
Bushallah indicated that he was aware of the conference and 
agreed that it would be a good opportunity to explore new 
avenues of engagement and training  (Note:  While on the subject 
of conferences, Bushallah stated that the planned November 20-21 
"Banking and Finance Libya" conference in Tripoli (hosted by 
Aisha Qaddafi's Waatasimo Foundation) had been canceled. End 
Note).  He also said that he would consider any USG proposals 
for closer cooperation on sector reform.  He mentioned that 
several other countries had extended offers for training 
assistance and that the Libyans would determine which proposals 
were most advantageous (Embassy note:  the souk is open.  End 
note).  Asked if the Central Bank Institute could provide 
assistance in setting-up appropriate meetings, as well as the 
facilitation of visa issuance for a future financial sector 
service reform team visit, Dr. Bushallah said that he would 
welcome a team with training proposals. 
 
¶6.  (U)  Following up on this positive discussion, post's PAO 
section is engaging with Dr. Bushallah to provide information on 
the full range of U.S. educational training and exchange 
programs available to the Central Bank over the coming year. 
Post has also reminded the Central Bank about the Federal 
Reserve Bank conference in New York, and has encouraged a quick 
decision Libyan participation. 
 
¶7.  (C)   COMMENT AND ACTION REQUEST:  This may be another one 
in a continuing series of grandiose Libyan projects that are 
announced, but then falter during implementation due to the 
complex bureaucracy inherent in a "state of the masses" 
governing system.   While Embassy has been pressing continually 
for an official government reception of a MEPI delegation, we 
are most likely to achieve our MEPI objectives if we help the 
Libyans achieve some basic comfort level with the scope of 
programming.   This may be an opportunity to bring in a focused 
team of financial sector service reform experts to initiate 
programming as a good "foot in the door" project, that could 
also be combined with additional work through the Qadhafi 
Development Foundation's National Economic Strategy for maximum 
impact.   Please advise if a financial reform specific visit 
might be possible in January or February 2007.  END COMMENT AND 
ACTION REQUEST. 
GOLDRICH