Rabat – Moroccan Minister of Finance and Economy Mohamed Benchaaboun announced on Tuesday, October 22, that the country will issue an international bond worth $1.5 billion next month.
Benchaaboun commented on the International Bond in a press conference where he presented Morocco’s Finance Bill for 2020.
The official told the press that the government wants to “use this window ad we waited until interest rates were low.”
During his presentation, Benchaaboun acknowledged that some sectors are experiencing crises, including the education and health sectors. The minister also announced the government’s ambition to cut unemployment through the new finance bill.
According to Benchaaboun, the bill aims to create 20,000 job opportunities.
The North African country is also aiming for a fiscal deficit of 3.5 % of gross domestic product (GDP) in 2020.
The country expects economic growth of 3.7% next year.
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Morocco has made clear its intention to go back to international bond after four years. In March, governor of Bank Al Maghrib (BAM) Abdellatif Jouahri said that Morocco planned to issue two international bonds, each worth MAD 11 billion .
BAM plans to issue one bond this year and the second in 2020.
Benchaaboun said that the first bond will not exceed $1.5 billion.
The government bonds are loans made by investors to the government, Morocco will pay interest on the loans at a set rate.
Other than the Islamic bonds Morocco issued in September 2017 the first bond in November will be Morocco’s first since 2014, when the country sold €1 billion of “10-year Eurobond with a yield of 3.7%,” according to Reuters.
The plan to put back the bond plans comes amid warnings against too much external debt.
Morocco continues to borrow to carry out socio-economic projects. The latest loan was from the World Bank.
The bank announced a new $500 million loan to finance a program to support Morocco’s education sector.
