AGR: Morocco continues to benefit from the confidence of foreign donors


Morocco continues to benefit from the confidence of foreign donors, estimates Attijari Global Research (AGR) in its recent “Research report – fixed income”.

This confidence is materialized by a demand which exceeded 11 billion dollars, despite a context marked by increasing risk aversion towards the debt market of emerging countries in general, explains AGR in this report entitled “Morocco: an exit internationally successful”.

In this sense, the International Monetary Fund (IMF) granted a flexible credit line (LCM) for an amount of $5 billion following Morocco’s exit from the FATF “grey list” in February 2023, notes the report.

AGR analysts also believe that the Treasury’s recourse to the domestic market should be significantly reduced, thus making it possible to dissipate the upward pressure on the yield curve observed at the start of the year, adding that the lifting of 2.5 billion dollars would allow the State’s finances to remain consistent with a target external financing of 25% in 2023 compared to only 22% during the period 2021-2022.

The use of this bond loan, estimates the same source, would make it possible to maintain foreign exchange reserves at a comfortable level, around 6 months of imports of goods and services, reassuring commercial partners about the Kingdom’s financial commitments.

“Ultimately, Morocco shows its capacity for resilience in the face of possible exogenous shocks in a context which remains characterized by a high level of uncertainty,” underlines the note.

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