The Ivory Coast has agreed to repay some $30m of embezzled European Union aid funds.

A joint statement from the Ivorian government and the EU office here in Abidjan said the money would be repaid over five months.

The EU froze budgetary aid to the Ivory Coast when a financial audit last year revealed irregularities.

The issue has become a sensitive political one in Ivory Coast with the government accused of damaging the country's until now relatively good image in the West.

Opposition political parties referred to the case as one of several examples of official corruption here.

Ordinary Ivorians bring up the matter whenever there is an increase in the prices of basic products, saying they are being forced to pay for crimes committed by their leaders.

The gap between rich and poor in Ivory Coast is very wide.

Case of the European Millions

The Case of the European Millions, as it is popularly known here, has fuelled widespread belief that the sumptuous villas and limousines used by the ruling class were not obtained entirely legally.

The government has agreed to implement a series of measures to tighten up on corruption, including internal and external audits and the EU has promised to start budgetary support again as a result.

The president of the Ivory Coast admitted there had been corruption, which included government officials and private sector contractors over-invoicing on purchases for aid projects.