November 10, 2010 -- The outgoing Italian ambassador, Mr Pierandrea Magistrati, has announced the cancellation of some of Seychelles' debts to his country and the rescheduling of the rest.

An agreement on the debts is being signed today.

Ambassador Magistrati who is based in Nairobi, was at State House yesterday to bid farewell to President James Michel, after four years in the post. He said the debt cancellation and rescheduling was Italy's response to the success of the economic reform programme President Michel launched in 2008.

"When I first came here, Seychelles' situation was very difficult. Then came the reforms which I'm very happy with, especially because the people understood the need for them - and that was very important," he said.

Mr Magistrati said the reforms became a success that has been lauded by key global bodies like the World Bank and the International Monetary Fund.

"They are all positive, and so are we, and that's why we have decided to cancel part of the debts you owe us and reschedule others. The situation now is much better than it was three years ago," he said.

He commended the President for launching the reforms and noting that other nations have done the same with Seychelles' debts.

Mr Magistrati regretted that pirates can now operate far from Somalia and affecting both Italy and Seychelles as they become more violent.

"We are grateful that Seychelles is helping with the prosecution and jailing of some of the pirates," he said.

The outgoing ambassador then described relations between Seychelles and Italy as very good. He said Seychelles supports Italy at international forums.