Japan reschedules I.Coast's debt, urges election

Japan on Tuesday rescheduled 91.5 million euros (126 million dollars) in Ivory Coast's debt and urged the divided west African country to hold a long-delayed presidential election.

The accord was signed at a ceremony in Abidjan by Ivorian Economy Minister Charles Koffi Diby and the Japanese ambassador, Yoshifumi Okamura. Part of the accord provided for 38 million euros to be repaid over 40 years, with an "exceptional deferment" of more than 42 million euros.

"Today, Japan has signed this agreement and thus kept a promise by the Paris Club (of creditor nations). It's the turn of the Ivorians to keep theirs," by holding elections, Okamura said at the ceremony.

"I'm a little bit disappointed. The credibility of the Ivory Coast is in danger. Do you know that this lost time will cost dearly, and represents a serious threat for the credibility of Ivory Coast?" the ambassador went on.

Ivory Coast is due to hold an election in "late-April-early May," according to a latest agreement reached by President Laurent Gbagbo, the former rebel New Forces (FN) and the political opposition under the aegis of mediator President Blaise Compaore of Burkina Faso.

A presidential election has been delayed six times since Gbagbo's mandate expired in 2005, and a further postponement was caused when he in February dismissed the government and the Independent Electoral Commission (CEI), accusing the latter of fraud in compiling the voters' roll.

Prime Minister Guillaume Soro's New Forces ex-rebels hold the northern half of the country, which has been in their hands since a foiled coup bid against Gbagbo in September 2002 led to a brief civil war.

In order to obtain debt rescheduling and engage in financial dealings with the International Monetary Fund and the World Bank, the Ivorian government has had to commit itself to a number of reforms, notably poverty reduction.

In March 2009, it qualified as one of the Highly Indebted Poor Countries, which will entitle it to a considerable reduction in its foreign debt. Ivory Coast last year benefited from debt reduction by the Paris Club in May, then by the London Club of private creditors in September.