Spain to convert part of Moroccan debt into investments

The Spanish government decided on Friday to effect a conversion of the Moroccan debt to Spain, consisting in loans granted by the development aid fund, into investments amounting to 50 million Euros, official sources said in Madrid.

The ministers council also approved the selling in the market up to 40 million Euros of a part of the Moroccan debt.

The debt, which will be converted into investments, corresponds to loans granted in February 1989, March 1990, August 1991, May 1994 and July 1997.

The public investments of the operation will go to the construction of damaged zones in the region of the Moroccan Northern town of Al Hoceima hit last February by an earthquake.

The operation will be carried out by the official lending institute that will sell a part of the Moroccan debt.