The budget “will place Morocco at the forefront of the most enterprising countries in terms of post-crisis stimulus packages,” the King said.
Rabat – Morocco’s MAD 120 billion ($12.84 billion) stimulus package, announced by King Mohammed VI, will be separated into two main parts.
The budget includes MAD 45 billion ($4.81 billion) for strategic investment in major projects and MAD 75 billion ($8.02 billion) for facilitating the access to business financing, Minister of Economy Mohamed Benchaaboun announced.
King Mohammed VI first announced Morocco’s stimulus package on Wednesday, July 29, in his Throne Day speech.
“Some 120 billion dirhams will be injected into the national economy, representing 11% of our GDP — a proportion that will place Morocco at the forefront of the most enterprising countries in terms of post-crisis stimulus packages,” the King said.
The minister announced the budget’s division during a press conference on Tuesday, August 4.
The investment budget of MAD 45 billion will be spent in the form of thematic funds relating to certain vital sectors, Benchaaboun announced.
MAD 15 billion ($1.6 billion) will go towards the COVID-19 special fund to be reinvested in vital sectors. Meanwhile, the package will inject MAD 30 billion ($3.21 billion) into the economy through public-private partnerships.
Easier access to loans
The remaining MAD 75 billion will facilitate access to state-guaranteed investment loans, with lower interest rates. The budget would allow businesses impacted by the COVID-19 pandemic to relaunch their activities, as well as encourage entrepreneurs to begin projects.
The Moroccan government will adopt a decree-law in its next meeting to manage the overall MAD 120 billion. The legal text would put in a place a strategic fund and a committee to supervise it.
Besides detailing the stimulus package, Morocco’s minister of economy announced the upcoming signing of two agreements this week.
The first agreement, between the General Confederation of Enterprises in Morocco (CGEM) and the Professional Grouping of Banks in Morocco (GPBM), concerns business loans.
The second agreement concerns tourism and other sectors that were heavily impacted by the COVID-19 crisis, Benchaaboun revealed, without disclosing further details.