Rabat – On June 19, Morocco signed an agreement with the Arab Fund for Economic and Social Development to borrow 2.27 billion MAD in an effort to boost its infrastructure projects.
Morocco’s Finance minister, Mohamed Benchaaboun, and Abdelkader Amara, the minister for Equipment, Transport, and Water Logistics, as well as the Director of AFESD, Abdlatif Yousef Al-Hamad signed the agreement at the Ministry of Economy and Finance in Rabat.
The agreement is part of Morocco’s plan to develop road and dam projects, reports Reuters.
“The loan will help the country improve its road network and upgrade a dam serving irrigation purposes in eastern Morocco”, said Morocco’s Finance Minister, Mohamed Benchaaboun.
The minister also added that the loan is a part of the country’s plan to develop the Laayoune highway project which will link northern and southern Morocco.
Reuters reports that Morocco’s treasury debt will increase to 66% of the total GDP in 2019 compared to 65.8% in 2018.
The total public debt has risen to 81.8% of the country’s GDP in 2019 compared to 81.4% in 2018, reports Reuters, quoting Central Bank figures.
According to the Treasury and External Finance Department (DTFE), Morocco has received MAD 30.4 billion in foreign funds in 2017, up 35.7% compared to 2016.
The Arab fund stated that “During the year 2018, the Arab Fund extended eleven loans, to six Arab countries, for a total amount of KD 464.0 million (MAD 14.59 billion). During the same year, the Arab Fund also provided 36 national and inter-Arab grants, for a total amount of about KD 7.3 million (MAD 229.5 million).”