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Tuesday 20th March 2018

Morocco Receives $237m from Kuwait’s Arab Fund

Business

7Dnews London - Reuters

Thu, 20 Jun 2019 02:48 GMT

The Kuwait-based Arab Fund for Social and Economic Development signed a deal on Wednesday, June 19th, to lend Morocco $ 2.37 million so the latter can finance road and dam upgrade projects, reported Reuters.

Morocco’s minister of finance, Mohamed Benchaaboun, said that the loan will help the government to enhance the road network and upgrade a dam serving irrigation goals in eastern Morocco.

The Arab Fund for Social and Economic development has given Morocco 72 loans estimated at $4.4 billion during the past four decades.

The Moroccan government resorted this month to the sale of an 8% stake in the country's largest Telecom operator, Maroc Telecom, worth some $920 million to help curb the budget deficit to 3.3% this year, from 3.7% last year.

The budget deficit, excluding privatisation revenue, is expected to stand at 4.1% in 2019, according to the central bank.

Cash-strapped Morocco continues to be exposed to the performance of the euro zone; its main trading partner and source of tourism and migrant remittances.

It expects its treasury debt to hit 66% of gross domestic product in 2019 after 65.8% in 2018, while total public debt is seen rising to 81.8% of GDP in 2019 from 81.4 % in 2018, according to central bank figures.

Middle East