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Morocco's Fiscal Fortitude: Lekjaa Unveils Roadmap to Reduce External Debt

Morocco's Fiscal Fortitude: Lekjaa Unveils Roadmap to Reduce External Debt
Wednesday 19 June 2024 - 15:30
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In a comprehensive address, Fouzi Lekjaa, the Minister Delegate in charge of the Budget, outlined Morocco's strategic approach to tackling its external debt amidst prevailing geopolitical tensions and a global economic slowdown. His remarks offered a beacon of hope, outlining a pathway towards fiscal stability and sustainable economic growth.

Lekjaa observed a slight reduction in the debt index to 71.1% of GDP, a positive indicator he anticipates will continue its downward trajectory, dipping below the 70% threshold in the coming three years. This optimistic outlook is attributed to the government's concerted efforts to curb the budget deficit through targeted policies.

Lekjaa's remarks were contextualized within a broader framework aimed at reinforcing the equilibrium and sustainability of public finances while supporting ongoing reforms. He underscored the significant improvement in the budget deficit during 2023, which decreased to 4.4% of GDP, signaling a commitment to fiscal discipline and prudent management.

Addressing the sources of financing, Lekjaa emphasized the dominance of domestic resources, with external funding primarily utilized to finance structural reforms and specific projects. Notably, the International Monetary Fund (IMF) has endorsed the sustainability of Morocco's public debt, commending the nation's adept management and stable access to international financial markets.

Beyond the fiscal measures, Lekjaa highlighted the government's commitment to spearheading major reforms, including social protection initiatives and measures to bolster economic recovery. These efforts are underpinned by a legislative overhaul aimed at enhancing debt management and optimizing public finance operations, laying a solid foundation for the nation's fiscal resilience and fostering sustainable economic revival.

Lekjaa's comprehensive strategy underscores Morocco's unwavering determination to navigate the challenges posed by global economic fluctuations and geopolitical turbulence. By meticulously managing its external debt, fortifying public finances, and implementing strategic reforms, the nation is poised to emerge as a bastion of fiscal fortitude, fostering an environment conducive to sustained economic prosperity.

As Morocco charts its course through the turbulent waters of global financial markets, Lekjaa's roadmap serves as a guiding light, leading the nation towards a future where fiscal prudence, economic resilience, and sustainable growth converge to create a prosperous and thriving society for its citizens.


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