Morocco’s economic, financial stability attracts investors- minister
Thanks to its sound economic and financial fundamentals, Morocco has fostered its attractiveness to foreign investors, while receiving preferential terms from international financial organizations.
Within a month, Morocco’s reforms earned it an exit from the grey list of the Global financial crime watchdog, the Financial Action Task Force.
Few days later, Morocco scored another financial success with the issue of a $2.5 bln dual-tranch bond with preferential term.
“Demand for the bond was $11 billion, a fact underscoring the trust of foreign investors in Morocco’s finances, despite the difficult international context and high uncertainties,” said minister in charge of the budget Faouzi Lekjaa.
And earlier this week, the IMF gave an initial nod for Morocco’s request for a $5 billion flexible credit line (FCL) which the country plans to treat as precautionary against external shocks.
“Considering Morocco’s very strong policy frameworks and track record, IMF Managing Director Kristalina Georgieva intends to recommend approval of the FCL arrangement for Morocco when the IMF Executive Board meets again to take a decision in the following weeks,” the IMF said in a statement.
These three developments show that Morocco is “on the right path,” Lekjaa told the press following the weekly government meeting.
Leaving the grey list, the successful bond and the IMF credit line are key to safeguarding Morocco’s financial stability and avoid scenarios faced by other north African neighbors, he said.
These achievements are also conducive to Morocco’s efforts to generalize safety nets including mandatory health insurance and family allowances, he said.
Lekjaa also made it clear that foreign debt is ceiled by the budget law and geared towards public investment that generates job and value.