By Loubna Flah
By Loubna Flah
Morocco World News
Casablanca, September 28, 2012
The governor of Bank Al Maghreb Mr. Abdellatif Jwahiri announced that the GDP growth will go beyond 5% next year if the agricultural output reaches normal levels, the Moroccan daily Al Massae reported on Thursday.
Mr. Jwahiri displayed a noticeable optimism in a press conference held this past Tuesday boasting the capacity of Moroccan economy to reach this performance if Morocco is spared another dry agricultural season.
The governor of Bank Al Maghreb had announced last June that the GDP anticipated for this year would reach 3%. He ascribed this sluggish performance to the economic crisis affecting Morocco’s top trading partners in Europe, as well as the meager agricultural production jeopardized by low rainfall.
During his press conference on Tuesday, he explained that the current predictions are still maintained since the repercussions of the global financial crisis persist. Morocco’s trade deficit increased by 6, 1% last month. On the other hand, the remittances’ inflow dropped by 1, 8% which aggravates the deficit especially with the decrease by 5 % in travel revenues.
The governor of Bank Al Maghreb rules out the possibility that Morocco reaches the stage of structural adjustment often implemented by the IMF to ensure that the funds lent are spent in accordance with the overall goals of the loan.
In response to the liquidity crisis, the Moroccan authorities had asked the IMF last month for a precautionary line of credit worth $ 6, 2 billion to prevent any general bankruptcy that would incapacitate the national economy.
Mr. Jwahiri reaffirmed that the loan clauses align perfectly with the government’s commitment to harness inflation and to reduce the budget deficit from 6 % to 3% by 2016 in addition to building a solid banking system.
He went on to say that the liquidity injected by the Moroccan central bank was a necessary measure to boost the economy and to revive the banking sector. He also asserted that the injection of funds in the financial system is not always a bad omen as long as the injected assets are used to finance investment projects liable to create job and to stimulate growth.
Mr. Jwahiri made it clear that Bank Al Maghreb is keeping the liquidity fluctuations at check. “This continuous scrutiny allowed us to build one of the most solid banking systems in North Africa and the Middle East despite the difficult economic conjuncture,” he added.
As far as Islamic banking is concerned, the governor of Bank AL Maghreb asserted that he received four applications to open branches of Islamic financial institutions. The requests are being examined by a special committee and the licenses are more likely to be granted gradually.
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