The move would allow Morocco to receive exceptional loans and maximize its financial resources to respond to the novel coronavirus crisis.
Rabat – Morocco’s government council is set to discuss uncapping the country’s external loans, currently limited at MAD 31 billion (around $3.1 billion), during a meeting this afternoon, April 6.
The council, chaired by Head of Government Saad Eddine El Othmani, will deliberate on a series of economic measures and reforms in response to the impact of the novel coronavirus on the national economy.
A decision to remove the limit on Morocco’s external loans would allow the country to benefit from additional resources from international financial organizations such as the World Bank, the International Monetary Fund, and the African Development Bank.
The additional resources would help Morocco better respond to the COVID-19 crisis and mitigate its impact on the most affected economic sectors, such as tourism and transportation. They would also allow a larger part of the Moroccan society to benefit from aid, especially those living in precarious conditions.
Morocco is funding much of its response to the pandemic through its Special Fund for the Management and Response to COVID-19. King Mohammed VI ordered the creation of the fund on March 15 and the government launched the initiative the following day.
The fund had an initial budget of $1 billion. Donations from government institutions, business people, and public and private actors increased the fund’s budget by over $2.5 billion.
The Ministry of Economy, responsible for managing the fund, has already allocated approximately $200 million to upgrade the country’s healthcare infrastructure.
The sum will cover the purchase of medical and hospital equipment, including over 1,000 recovery beds, 500 ventilators, 100,000 blood donation kits, and 100,000 COVID-19 rapid testing kits, as well as several highly demanded drugs and medicines.
The fund will also finance aid given to workers and employees with suspended activity. The Economic Monitoring Committee, created to reduce the impact of the coronavirus crisis on the economy, announced that all workers who cannot practice their income-generating activities due to the crisis will benefit from a monthly stipend ranging between $80 and $200.
