Morocco’s External Debt Reaches $69.267 Million in 2023

Monday 09 December 2024 - 09:10

By: Dakir Madiha

Morocco’s External Debt Reaches $69.267 Million in 2023

A recent report from the World Bank Group, International Debt Report 2024, reveals that Morocco's external debt surged to $69.267 million in 2023, a significant increase from $27.3 million in 2010. The report provides an in-depth analysis of the debt’s composition and the conditions of Morocco’s recent borrowing commitments.

The majority of Morocco’s external debt stems from long-term obligations. Public and publicly guaranteed debt constitutes the largest portion, totaling $45.117 million. Multilateral creditors play a pivotal role, contributing 49% of the debt. Key players include the World Bank (IBRD), holding 20% ($9.423 million), and the African Development Bank at 10%.

Private creditors hold 36% of Morocco’s external debt, with bondholders accounting for 27% and other commercial creditors for 9%. Bilateral creditors contribute 15%, with France and Germany making up a combined 10%.

Debt-to-Economic Ratios and Financial Flows

In 2023, external debt stocks represented 110% of Morocco’s exports and 50% of its Gross National Income (GNI). Debt service obligations accounted for 9% of exports and 4% of GNI.

The report highlights that Morocco recorded net financial flows of $3.921 million in 2023, including $2.932 million in net debt inflows and $989 million in net equity inflows. Long-term external debt was the primary driver of this growth, rising from $23.7 million in 2010 to $55.3 million in 2023.

Public and publicly guaranteed debt from official creditors, particularly multilateral institutions, increased substantially—from $10.2 million in 2010 to $21.1 million in 2023. Private creditors also showed sharp growth, with bondholder debt rising from $1.3 million to $12.5 million over the same period.

Short-Term Debt and IMF Credit

Short-term external debt stocks expanded significantly, climbing from $2.7 million in 2010 to $10.2 million in 2023. The use of IMF credit and Special Drawing Rights (SDR) allocations peaked at $4.08 million in 2021 but slightly decreased to $3.9 million in 2023. SDR allocations, in particular, rose from $865,000 in 2010 to $1.9 million in 2023.

Disbursements and Debt Payments

Long-term debt disbursements, which peaked at $9.3 million in 2020, stabilized at $6.4 million in 2023. Principal repayments grew from $2.4 million in 2010 to $3.6 million in 2023. Interest payments nearly doubled during this period, increasing from $851,000 to $1.4 million.

This comprehensive debt analysis underscores Morocco’s reliance on multilateral and private creditors while highlighting the challenges posed by its growing debt service obligations. The data provides critical insights for policymakers aiming to manage the kingdom’s debt sustainability.