France launches bid to convert $ 127 mln Moroccan debt

The French Finance ministry launched Monday a tender for the conversion of a $ 127 million Moroccan debt owed to France into private investments to be carried in Morocco.

The move is part of an accord signed last year between Morocco and France for the alleviation of Moroccan foreign debts amounting to about $ 23 billion. About 19 % of this debt, or some $ 4 billion, is owed to Paris.

The French finance department called investors interested in the Moroccan debt swapping to submit their offers through their banks and to seek a prior accord of the Moroccan authorities for their proposed projects.

At the end of the 2nd annual meeting of the Moroccan-French high commission held this Oct.1-2 in Paris, France decided to grant Morocco a $ 750 Mln additional assistance to help the new Moroccan Socialist led-government carry out socio-economic development projects and alleviate the heavy debt burden.

The commission also signed a package of cooperation accords dealing with foreign debt alleviation, backing to Moroccan enterprises, education promotion, vocational training in addition to water and electricity projects in rural zones.

France is Morocco's major client and supplier. In 1997, Morocco exported to France $ 1.2 billion worth of goods, a figure representing 26.9 % of Morocco's overall exports while imports from Paris stood at $ 1.6 billion during the same year.