The Moroccan Ministry of Economy and Finance has announced that Morocco’s external public debt, in March 2019, was MAD 326.3 billion, or 29.5% of Gross Domestic Product.
Rabat – Morocco’s external public debt has dropped 1.4% compared to March 2018.
According to the Ministry of Economy and Finance, Morocco’s Treasury borrowed 44.9% of the total debt, public bodies borrowed 54.4%. The balance was borrowed by the banking sector and other public bodies.
Nearly half of Morocco’s debt, 48.6%, comes from international institutions.These include the World Bank and the International Monetary Fund.
Bilateral lending agreements make up 28% (of which 18.5% from European countries). 23.4% of the debt comes from banks.
The figures mean the majority of Morocco’s public external debt comes from Government partnerships, rather than from financial investors.
International lending plays an important part in Morocco’s development. This year the World Bank has lent millions towards education, digital transformation, and youth employment.
However, the loans have raised concern.
The 2019 Global Firepower Index (GFP) found that Morocco owes $51,480,000,000 in external debt.
In January, the High Commissioner for Planning (HCP) Ahmed Lahlimi Alami warned Morocco’s economy would continue to be weighed down by debt this year.
“Debt is becoming heavier and we must try to increase national savings, ” he said.