Morocco to abandon international bond issue in 2022

Morocco may no longer issue an international bond as was planned earlier this year amid deep uncertainty and market volatility, finance minister Nadia Fettah Alaoui said.

The government expects its financing needs to grow to 60 billion dirhams ($5.5 bln) next year compared with some 45 billion dirhams this year.

“We will try to strike a balance between domestic and foreign borrowing,” she said, adding that Morocco has used a precautionary liquidity line offered with the IMF.

Morocco is also seeking a new credit line with the IMF without jeopardizing its macro-economic and macro-financial standing as well as attractiveness to foreign investors, she said.

The government targets a growth rate of 4% in 2023, up from 1.5% this year and expects to reduce its budget deficit to 4.5% this year by increasing revenues including tax revenue.