The Italian government has approved a 10 million-dollar loan to improve operations of small and medium scale enterprises in the country.
Mr Alfredo Mantica, Italian Deputy Foreign Minister, who announced this, said the loan was to facilitate the realisation of the government's desire to use the private sector to develop the economy.
He said the first instalment of the loan was expected in the country soon.
Mr Mantica was speaking when he led an Italian delegation to pay a courtesy call on President John Agyekum Kufuor at the Castle, Osu on Tuesday.
The delegation was in Ghana to explore the possibility of Italian companies going into the provision of infrastructure.
Mr Mantica said Italy would in addition cancel Ghana's commercial debts totalling about 36 million dollars when it reached the completion point under the Highly Indebted Poor Country (HIPC) Initiative by the end of the year.
He said the relationship between Ghana and Italy had improved tremendously and commended the government for its support to Italy to secure a seat on the United Nations (UN) Security Council.
President Kufuor said whatever agreement was reached between both countries was borne out of mutual interest and common visions shared between them.
He said the co-operation between both countries would be centred on the energy, infrastructural development, agricultural and the private sectors.
President Kufuor said Ghana would reach the completion point under HIPC by the end of the year to benefit from the Italian government assistance.
He said as the current Chairman of ECOWAS, the West Africa Sub-Region would count on Italy when it assumed the chairmanship of the European Union (EU) next July to support infrastructural development and the integration of the economies of the countries in the Sub-Region.
"We want very special relationship with Europe", he said.
