Bolivia’s 60 million euro debt to Spain was cancelled yesterday by the Spanish government in order to assist in further development within Bolivia.

Prime Minister Zapatero said that 60% of the original debt would be squashed completely with the remaining amount redirected into educational requirements within Bolivia.

The Prime Minister said that the gesture was aimed at assisting Bolivia’s youth many of whom have no schooling at all.

The announcement was made at a joint press conference with the President of Bolivia Evo Morales. There will also be additional major investment in several industries in Bolivia including minerals and energy production.

Although there is said to be no strings attached to the deal Zapatero intimated that he thought that Spanish companies wishing to operate in Bolivia would receive full financial guarantees from the Bolivian government.