Pakistan and France have signed a debt rescheduling deal of 400 million US dollars as part of an overall relief package of 3.3 billion dollars arranged by the Paris Club.

"In the framework of the agreement signed with the Paris Club in January, 1999, Pakistan and France, reached an agreement on December 24 in Paris regarding the rescheduling of Pakistan's debt, " said a press release Thursday by the French Embassy in Pakistan.

Under the terms of this agreement, the debt servicing of French bilateral loans of 400 million dollars due from July 1,1998 to December 31, 2000 has been rescheduled.

It represents a significant contribution of 14 percent of the total debt rescheduling of Pakistan, it said.

Meanwhile, according to government sources here, a similar agreement with Moscow is likely to be signed Thursday.

A two-member Pakistani delegation is currently in Moscow to negotiate and sign the deal.

Under the Paris Club arrangements, Pakistan is to sign bilateral agreements with its members.

So far, Pakistan has signed debt rescheduling deals with the United States, Germany, Norway, Sweden, Austria, Spain, Denmark, Netherlands, Canada and South Korea.

The debt rescheduling amount of 3.3 billion dollars agreed with the Paris Club include the Official Development Assistance (ODA) and non-ODA loans.

Pakistan will pay back the ODA loans in 20 years, with a 10- year grace period. The non-ODA loans are payable in 18 years with a grace period of three years.