Morocco is set to take advantage of its improving macroeconomic situation by tapping into the bond market, more than a year after its successful $2.5 billion bond, Nadia Fettah Alaoui said. The bond would strengthen state finances and help cut the deficit, Fettah Alaoui told Bloomberg. The minister also reassured as to inflation which is expected to further drop to 2.2% this year, despite the increase in cooking gas prices. Morocco has cut its cooking gas subsidies by 10 dirhams, in a gradual approach that was preceded by direct cash handout to the needy. Moroccan officials argue that general subsidies benefited the rich the most and that curbing the deficit and improving public finances required making the subsidies system more targeted to benefit the poor.

Source: The North Africa Journal May 23, 2024 16:50 UTC