Morocco and France optimistic over cancellation of more Moroccan debts

French Minister of Economy, Finance and Industry Dominique Straus-Khan, said in Paris Monday that he is optimistic that the "Paris Club" will decide to write off all of Moroccan debt or at least raise the current 20% ceiling of the amount of debts convertible into investments.

The French minister said at a press conference attended by Moroccan peer, Fathallah Oualalou, and advisor to the Moroccan sovereign, Andre Azoulay, France had proposed to the G-7 of most industrialized countries that the 20% ceiling set for debts swapping into investments in "intermediary-income countries" should be canceled or reconsidered in next June's meeting.

He added that some members of the group are accepting the idea while the U.S.A. is not against it. He said that such a decision would be very important for Morocco which will reach very rapidly this ceiling.

Azoulay said the Paris Club is adopting a more open and pragmatic policy in debt management thanks to the French initiative. He went on that after France, Spain, Italy, the USA and Germany are now converting Moroccan debts into investments.