Morocco's Public Debt Reaches Significant Milestone
Recent official data has revealed that Morocco's consolidated public debt has surged to an astonishing 1,115.6 billion dirhams by the end of 2025. This marks a considerable increase from 1,017.9 billion dirhams in the previous year, indicating a rise of approximately 97.7 billion dirhams within just one year. Consequently, the debt-to-GDP ratio has escalated from 63% to 64.9%, amidst mounting financial obligations related to public debt servicing, particularly interest payments which consumed over 45 billion dirhams from the Treasury's resources.
According to the annual report on public debt, included with the draft finance law for 2027 and published by the Ministry of Economy and Finance, the Treasury's debt reached 1,145 billion dirhams at the close of the previous year, compared to 1,081.6 billion dirhams in 2024, reflecting an increase of 63.4 billion dirhams. Notably, the debt-to-GDP ratio has seen a slight decline for the third consecutive year, stabilizing at 66.6% from 67% previously.
Financial Burdens and Service Costs Increase
The data outlined in the report indicates that interest payments and commissions associated with the Treasury's debt amounted to 45.2 billion dirhams in 2025, representing an increase of 5.4 billion dirhams from the previous year, which recorded 39.8 billion dirhams—an approximate rise of 13.6%. This escalation highlights the growing financial burdens resulting from the country's debt, despite a decline in interest rates on new treasury bond issuances. Furthermore, the total cost for servicing the Treasury's debt, which encompasses both principal repayments and interest payments, reached 197.4 billion dirhams last year, up from 158.5 billion dirhams in 2024, indicating a significant increase of around 38.9 billion dirhams. This figure comprised 152.1 billion dirhams for principal repayments and 45.2 billion dirhams for interest and commissions, underscoring the substantial financial resources allocated annually to meet borrowing commitments.
By the end of 2025, the Treasury's debt composition included 845.2 billion dirhams of domestic debt, accounting for 73.8% of total debt, contrasted with 299.8 billion dirhams of external debt, which constituted 26.2%. This is an increase from 811.8 billion dirhams and 269.8 billion dirhams, respectively, in the previous year. The report further noted a rise in the Treasury's financing needs, which reached nearly 74 billion dirhams in the last year, compared to 52.8 billion dirhams in 2024, reflecting an increase of 21.2 billion dirhams. These needs were met through mobilizing resources from the domestic market and external financing, as the government continued to rely on borrowing to cover its financial requirements.
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