The Minister of Economy and Finance says 2018 will be a “decisive year” in decreasing indebtedness : 31/07/2017

The Minister of Economy and Finance says 2018 will be a “decisive year” in decreasing indebtedness

Mr. Mohammed BOUSSAID, Minister of Economy and Finance, announced that the Governmental Programme prepares the general framework for decreasing indebtedness in the horizon of 2021 and considers 2018 a “decisive year” towards this reduction.

In an interview published on Monday in “l’Economiste”, he also added that “all finance adjustment efforts are being consolidated and the deficit targets will be achieved”, specifying that the next budget should give priority to social sectors and that the context is more favorable than the last year in terms of growth, as we revised the growth rate upward to 4.8%.

Mr. BOUSSAID noted that it goes without saying that all export sectors "make good performance" in the first six months of this year, with an increase of exports by 6.2% and imports by about 7%, adding that this situation still generates a trade deficit, but the export sectors continue their performance, while the indices of the other sectors are positive.

The Minister also mentioned a possible use of the international financial market. He also stressed that "the Treasury continues to finance itself properly without any problem", despite the delays caused by the approval of the draft finance act.

In addition, Mr. BOUSSAID specified that 5 Public Institutions represented more than 80% of external indebtedness, saying that this indebtedness is the result of a voluntary investment policy that enabled our country to get equipped. In this way, external investments increased by 20% since the beginning of this year.

Regarding the contract with the ONEE, which is coming to an end, the Minister assured that the Steering Committee, created by said contract, "is reviewing the obligations of each party". The State has largely respected all the commitments made under this contract, citing, in particular, a capital increase with MAD 2 billion, a reimbursement of gasoil differential, and the treatment of VAT. The Minister thus highlighted the colossal effort that enabled the office, with the price restructuring, to "regain its colors and keep its head above water".