Italy agrees to convert $100 million of Moroccan debt into investment

Italy agreed recently to swap $100 million of Morocco's debt into public investments.

The conversion will be finalized shortly between the two countries, says a joint document signed by Moroccan and Italian Finance authorities.

The document, which was made public Friday in Rabat, also says that Italy has earmarked around $16 million for small and medium Moroccan enterprises to help them purchase Italian products and services.

Italy is the third European country after France and Spain which agreed to convert Morocco's foreign debt, amounting to about $23 billion. About 19% of this debt, or some $4 billion, is owed to Paris.

Last October, France granted Morocco a $750 million financial assistance destined to alleviate the debt burden.

France has so far converted around $420 million Moroccan debt into investments while Spain has canceled about $520 million of Moroccan debt.