Swapping Morocco's debt owed to US and UK is possible; oil explorationss
Morocco, Economics, 9/22/1999

There is a possibility for the USA and Britain to swap Morocco's debt into investments in the field of energy, Moroccan Energy and Mining Minister, Youssef Tahiri, said.

Debt swapping, which has become an internationally recognized financing form, is preferable for financial partners who wish to carry out energy projects in Morocco, Tahiri told MAP bureau in London.

Tahiri is leading a Moroccan delegation of oil experts to present Morocco's oil drilling potentials to some 50 British companies and counsellors.

The Minister underlined that Morocco's assets and potentials make of it a credible partner, whose political stability and security are warrants of success to friendly countries and enterprises.

He added that the Moroccan government is keen on attracting more investments to secure an increased growth rate to generate more jobs and ensure economic and social prosperity.

Tahiri further stated that the development of energy infrastructures is among the topical issues of the government's action plan. He added that Morocco is also determined to consolidate cooperation with international partners who spare no effort to back Morocco's projects.

After London, Tahiri will fly to the US city of Houston to present the Moroccan energy program to American oil companies.

Morocco had concluded in the few past years oil drilling contracts with Saudi ARAMCO company, Australian Roc Oil Company and Swedish Taurus.

The Minister announced that a new law on oil drilling in Morocco will be tabled before the Parliament next October 5. "I hope that the text will be adopted at the end of October and promulgated in the month of November." He described the law as very stimulating and attractive to foreign investors.

The text provides for a decrease of the State's share from 50 to 25 % if oil is discovered, he said, adding that the document also includes encouraging fiscal amendments. "Upon the request of international societies, we have revised the system of royalties, total tax exemption over 10 years and the setting of concession duties at a reasonable level, enabling firms to compensate the fees of unfruitful drilling."

Previous Stories:
  Morocco calls for reorienting strategies to human development   (4/29/1999)
  Washington is ready to alleviate Morocco's debts   (4/7/1999)
  Morocco and France optimistic over cancellation of more Moroccan debts   (3/23/1999)

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