This is the Minister of Economy and Finance, Nadia Fettah, who says this for Bloomberg. Morocco does not rule out a new entry of Morocco into the international market. This approach would be part of a broader strategy aimed at strengthening the Kingdom’s fiscal health and improving investment conditions, the daily writes Eco inspiration in its edition from Friday 24.5.
“In addition to enabling the diversification of financing sources and the strengthening of foreign exchange reserves, the collected funds could help finance national megaprojects, which would stimulate long-term growth.“, we read.
Nadia Fettah Alaoui seems confident in Morocco’s economic future and the country’s improved financial position to attract international investment. This is where international obligations take on their full meaning. In 2023, Morocco managed to attract $2.5 billion in foreign direct investment, an increase of 15% compared to 2022, which is concrete evidence of the increased confidence of international investors.
Economic forecasts for 2024 indicate GDP growth of 4%, supported by investments in infrastructure and industrialization.
In addition, Morocco’s ability to successfully issue bonds will depend on investor confidence in ongoing tax reforms and the country’s economic stability. Added to this is the risk that a new raise “could increase the share of public debt in GDP, and the cost of borrowing could turn out to be high if market conditions are not favorable. This is in addition to the fact that rating agencies could find fault with the perception of sovereign risk“, he emphasizes Eco inspiration.
During the last international bond issue, Morocco managed to raise $3 billion. This issue was well received by international investors, despite the uncertain global economic context due to the Covid pandemic.
The collected funds were used to support economic recovery measures and strengthen the public health system. The issuance also allowed for the diversification of the country’s funding sources, reducing its dependence on national funding and international aid.