September 21, 2021

Lakefront Hartwell

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Govt 19: Morocco responds “like rich countries”

The Moroccan government has acted “quickly” in terms of health and finance since the outbreak of the Govit-19 epidemic, according to a new report by the Institute of Montagne, a French think tank that responds, plans and develops. General policies in France and Europe. The report notes that the Kingdom has “managed to support institutions with institutions comparable to rich countries, despite severe imprisonment” and “the stability of MacRae, which is essential to Europe.”

At the end of the first wave of the epidemic, Morocco quickly mobilized a “large number” of tools to support the economy and sought to support the purchasing power of the most vulnerable, as documented in the document, which lists various measures to address the health crisis associated with Govit-19 and its social and economic impact.

In the aftermath of the first epidemic, the Kingdom “demonstrated its ability to mobilize large amounts of financial resources quickly, while at the same time prioritizing the management of vulnerable populations and health emergencies,” the report said, analyzing the political, economic and social conditions in the three macrophages (Morocco-Tunisia-Algeria) and health Relations between these countries and Europe in the wake of the crisis and its impact on the economies of North African countries.

Despite the high debt, Morocco has been able to mobilize “significant” internal resources to support its economy and most recently has been able to finance itself effortlessly through money markets, and the main project that the Kingdom needs to finance. Medium-term development, for which a high-level commission was set up shortly before the onset of the health crisis, representing a new development model.

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Under optimistic circumstances, Morocco’s financial needs could range from $ 3.5 to $ 6.5 billion, and under unfavorable conditions it could be between 6 6 and ப 11 billion, if there is no assistance from international donors, it is pointed out.

Nevertheless, as Morocco has a “better” relationship with international donors in terms of “political stability and organizational capacity” to implement large infrastructure projects, “donors are likely to contribute significantly to the significant acceleration of the country’s investment effort.”

Unlike its neighbors, Morocco’s political stability helped it refinance its markets and control inflation, “the report said. He underscores the performance of the Moroccan economy, which qualifies the country as a potential growth model for attracting foreign capital, creating a financial system “stronger than its neighbors” and financing public investment and current deficits.

The “Danger Med” project and significant investments by European auto and aerospace companies (Renault, Airbus) are hallmarks of this charisma, underscoring the Paris-based French think tank, “The passenger car has become the first product. Morocco ”.

Continuing that the central bank (Bank al-Maghrib) also has a “good ability to control inflation”, the consumer price index never crossed 2%, thus stabilizing the rate and raising the confidence of foreigners. Investors.

The report also underscores that Morocco has access to the capital markets with a sovereign rating of “PPP -” (“investment quality”) issued by Standard & Poor’s, and that public investment is widely implemented through public institutions, the Moroccan financial system being “relatively low” external debt. Allows.

This represents about 34.9% of GDP in 2020 as against 29.5% of GDP in 2018 and 2019, of which almost half are contracted by public administrations, mainly more than half of what can be received from multidisciplinary donors. Forex in the Moroccan Treasury. As a result, Moody’s notes that the Moroccan public debt ratio is in line with the average of a model with a “Pa1” rating, the report said.

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He also believes that before the crisis, the macro-financial situation in Morocco was good, allowing the kingdom to refinance its debt in the markets and curb inflation, which would allow “more social reforms and radicalization”. According to him, H.M. This is the whole point of the response initiated by King Mohammed VI, led by Shakib Benmouza, chairman of the Special Commission on the Model of Development in Morocco.

The report notes that Morocco is “highly integrated with European trade” and “needs support” from its northern neighbors in the wake of the health crisis, which could be an opportunity for the country to sustain itself.