The Moroccan Parliament Authorizes the Government to Raise the Ceiling of External Financing

  • Rabat, Morocco
  • 1 May 2020

The Moroccan parliament certified the government to exceed the foreign debt ceiling, in order to face the repercussions of the spread of the Coronavirus, especially at the level of the foreign exchange balance.

The Minister of Economy, Finance and Administration Reform Mohamed Benchaaboun explained that the procedure to exceed the ceiling of foreign debt falls within the framework of emergency measures to reduce the repercussions of the pandemic on the Moroccan economy.

The government decided to exceed the foreign debt ceiling that was specified in the current fiscal law in the range of $3.1 billion, as Parliament had authorized this, before the repercussions of the pandemic required that it be exceeded.

The International Monetary Fund expects that the Kingdom's foreign debt will rise to 35.1% of the gross domestic product, after it was in the range of 33% last year.

Benchaaboun emphasized that hard currency assets are expected to witness a significant decline, due to the impact of a group of sectors generating hard currency, especially tourism, foreign direct investment, exporting sectors and remittances of expatriates abroad.

Source (New Arab newspaper, Edited)