Paris swaps part of Morocco's debt, extends Rabat FF 100 million

Paris okayed the swapping into investment of 700 million FF of Moroccan debt and extended Rabat 100 million FF to alleviate drought effects and fund development projects in northern Morocco.

Visiting King Mohammed VI and Premier Lionel Jospin attended Tuesday the signing of the agreement by Moroccan Minister of Economy and Finance Fathlallah Oualalou and french peer Christian Sautter.

The swapping process initiated in 1996 has totalled 2.7 billion FF following similar agreements in 1996, 1997 and 1998 and in the wake of an agreement by the Paris Club of creditors last September raising a ceiling on debt conversion.

France is Morocco's largest creditor with 22% of overall foreign debt estimated to be around $19 billion.

A press release of the French prime minister department said Paris also agreed to extend Morocco 100 million FF, half of which goes to development projects in the northern region of the kingdom and the other half would fund grain procurements, up to 50,000 tons of wheat, to make up for drought-induced cereal shortage.

France also announced it would see to speedier visa issuing by consulates to increase the numbers of Moroccans willing to visit the country in the summer.