Libya and Greece have signed an accord that paves the way for "strategic cooperation" between the two countries during the Greek premier's visit to the oil-rich country, Libyan media reported Thursday.

The memorandum of understanding envisages cooperation" in the areas of investment, energy, tourism, food production, finance and renewable energy, Libya 's official JANA news agency said.

It also calls for joint investment in oil, gas, food and pharmaceuticals.

Greece is in the throws of a severe economic crisis and Libyan Prime Minister Baghdadi Mahmoudi said during a visit to Athens in May that Tripoli stood ready to help the stricken country overcome its difficulties, while strengthening cooperation in energy.

During his one-day visit to Libya Wednesday, Greece 's George Papandreou met Mahmoudi, before being received by Libyan leader Moamer Gadhafi.

"We are today reviving a solid and historic relationship between the leader Moamer Gadhafi and my father Andreas," when he headed the Greek government in the 1980s, Papandreou was quoted by JANA as saying.

He added that Greek companies could contribute to Libya 's development programme, particularly in the fields of infrastructure and archaeology.

A massive public deficit has dented international confidence in Greece 's economy, frightening traditional investors and lenders.

Last month, Athens agreed a rescue package worth EUR110 billion with the European Union and International Monetary Fund to cover its debt obligations after it could no longer afford to raise fresh funds on the international markets.

Διαβάστε ακόμα