VZCZCXRO1346
RR RUEHAG RUEHBC RUEHDE RUEHDF RUEHDH RUEHIK RUEHKUK RUEHLZ RUEHROV
RUEHSL RUEHSR
DE RUEHLB #0909 2251258
ZNR UUUUU ZZH
R 131258Z AUG 09
FM AMEMBASSY BEIRUT
TO RUEHC/SECSTATE WASHDC 5526
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RHEHAAA/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS BEIRUT 000909 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR NEA/ELA AND EEB/IFD/ODF 
PLEASE PASS TO OPIC HARRIS MEHOS, SENIOR MANAGER, SF 
STATE PASS USAID LAUDATO/NANDY/SCOTT 
TREASURY FOR PARODI/BLEIWEISS/AHERN 
NSC FOR SHAPIRO/MCDERMOTT 
 
E.O. 12958: N/A 
TAGS: EAID EFIN PGOV LE
SUBJECT: APPLICATION FOR OPIC FINANCE: AMERICAN UNIVERSITY OF BEIRUT 
 
REF: STATE 74194 
 
¶1.  (U) The following are Post's comments in response to reftel. 
 
¶2.  (SBU) The American University of Beirut (AUB), one of the most 
reputable universities in Lebanon and the region, is a private, 
independent, non-sectarian institution, with over 7,000 students 
currently enrolled.  Many of Lebanon's political class and business 
community are AUB graduates.  While AUB is a recipient of USAID 
assistance for scholarships and offers a student loan program, these 
fall short of student demand.  In order for AUB to accommodate more 
Lebanese students, it is striving to expand its student loan 
financing program. 
 
¶3.  (SBU) We do not anticipate major events that could impact AUB's 
presence.  AUB remained open through years of political instability 
in Lebanon, including throughout the 1975-1990 civil war and the 
July 2006 war with Israel, and it has continued to grow in size.  If 
the security situation remains stable in Lebanon, future prospects 
for private education are excellent. 
 
¶4.  (SBU) The Embassy has a good relationship with AUB's president, 
as well as with its deans, professors, and several of its trustees, 
many of whom are known to USAID and PD offices and all of whom are 
well-respected in Lebanon. 
 
¶5.  (SBU) A senior contact at the Banking Control Commission 
(Lebanon's banking regulator) told us that all the possible 
participating banks (listed in reftel) for this program enjoy a good 
reputation.  They are among the top ten banks in Lebanon, with the 
exception of Banque Misr Liban, a sound, but small bank.  Also, a 
senior contact at Lebanon's financial intelligence unit, the Special 
Investigation Commission, told us that AUB and the possible 
participating banks enjoy a good reputation. 
 
¶6. (SBU) The Embassy recommends approval of AUB's application for 
the OPIC student loan financing program.  Nonetheless, we also note 
that Lebanon has an acute need for student loan financing at its 
many other universities, including some U.S.-affiliated 
institutions.  We encourage OPIC and other USG agencies to explore 
further opportunities in this area. 
 
SISON