ROME, Oct. 27 (Xinhua) -- Italian Defense Minister Ignazio La Russa said on Tuesday that at least 400 Italian soldiers sent as reinforcements for the Afghan presidential election would return to Italy by Christmas.

    Around 500 extra Italian soldiers were deployed to Afghanistan ahead of the presidential election on Aug. 20. There are around 3,000 Italian troops serving in Afghanistan, mostly in the west of the country.

    La Russa underlined the importance of a free and democratic electoral process in Afghanistan.

    "The purpose of the vote is to offer Afghans a government which is credible and capable of giving them answers. It must be a legitimate government chosen by the people," he said.

    "We cannot think of any other solution if they want to defeat the Taliban. The ballot box offers the opportunity for the stabilization of the country," added La Russa.

    Last week, Afghanistan's Independent Election Commission announced a presidential runoff election would be held on Nov. 7, saying no contender had won an outright majority in the fraud-tainted presidential vote.

    The Italian contribution to the stabilization of the country involves as well nation-building efforts. A bilateral agreement was signed on Tuesday between Italy and Afghanistan aimed at providing small loans to poor Afghans in the western provinces of Herat, Farah and Baghdis, where Italian troops operate.

    The initiative will "allow to give micro-lending to tens of thousands of families and small enterprises favoring the development of the local economy among the most disenfranchised sector of the population," according to the Italian embassy in Kabul.

    The accord was signed by Afghan finance minister Omar Zakhilwal, Italy's ambassador to Afghanistan, Claudio Glaentzer, as well as by a special envoy of Italy's foreign minister Franco Frattini, Attilio Massimo Iannucci.

    Micro-credit loans have the objective of spurring entrepreneurship among poor people who are unable to get access to traditional credit due to low incomes and lack of steady employment.

    "The fight against terrorism and the country's stabilization are a long-term plan providing humanitarian and economic assistance. Many insurgents would leave the guerrillas if they had a job," said special envoy Iannucci.

    The fund will be managed by the Micro Finance Investment Support Facility for Afghanistan (MISFA), an independent organization set-up in 2003 to get donor coordination.

    Since 2001, Italy has contributed more than 466 million euros (690.1 U.S. dollars) to cooperation activities in Afghanistan in the areas of justice, infrastructure and health.

    In addition, more than 53 million euros (78.5 dollars) will be destined to Herat for the development of agriculture, governance and institution building.