November 12, 2010 -- Seychelles is benefitting from a 45% cancellation of its debt, valued at US$ 8 million, with Italy. Repayment of the remaining US$10 million is rescheduled over 18 years, with a three-year grace period.

It was the outgoing ambassador of Italy, Mr Pierandrea Magistrati and the principal secretary for Finance, Mr Ahmed Afif, who signed the debt relief agreement on Wednesday.

Mr Afif explained that the agreement follows the Paris Club negotiations whereby all the club's member countries have agreed to write off 45% of our debts and to reschedule the balance.

"The debt rescheduling will allow Seychelles to reduce its debt-servicing requirement and thus alleviate pressure on the country's balance of payments," said Mr Afif who also expressed the appreciation of the government to Italy and other Paris Club members for standing by Seychelles in the islands' moment of need.

Ambassador Magistrati had said that Italy offered the debt relief as a result of the positive changes that have followed Seychelles economic reforms.  He commended President Michel for launching the reforms. He noted that other nations have cancelled Seychelles debts.