Proactive Approach to External Debt Management in Morocco
In a significant development for Morocco’s economic landscape, the newly appointed government under the leadership of Fatima Zahra Mansouri has unveiled its commitment to managing the country’s external debt with caution and foresight. This proactive approach is essential for ensuring the sustainability of public finances and funding major developmental projects amidst escalating global economic and geopolitical challenges. The government aims to restructure the size and indicators of public external debt while closely monitoring the risks associated with fluctuations in global markets.
According to the annual report on public debt, Morocco’s total public external debt stood at 517.4 billion dirhams (approximately 51.74 billion USD) by the end of 2025, which is equivalent to 30.1% of the Gross Domestic Product (GDP). This figure represents a slight increase of 1% compared to 2024. The relative stability in the debt-to-GDP ratio is indicative of effective financial discipline policies and successful management of the budget deficit. The debt portfolio is composed of treasury debts, amounting to approximately 299.8 billion dirhams (about 29.98 billion USD), making up 57.9% of the total public external debt. The remaining debts, incurred by other borrowers, companies, and public institutions, reached 217.6 billion dirhams (roughly 21.76 billion USD), equivalent to 42.1% of the total, primarily directed towards infrastructure projects and strategic sectors.
When analyzing the creditor structure, loans from official institutions comprise the largest share at 70.5% of the total debt. This is divided between multilateral institutions, which account for 50.6%, and bilateral loans from Morocco to other countries at 19.9%. In contrast, private creditors and international financial markets hold 29.5% of the debt, which amounts to 152.5 billion dirhams (approximately 15.25 billion USD), including treasury bonds and international issuances from the Office Chérifien des Phosphates (OCP). Leading the list of creditors is the World Bank with a balance of 114.2 billion dirhams (around 11.42 billion USD), followed by the African Development Bank at 53 billion dirhams (approximately 5.3 billion USD), and the European Investment Bank at 28.9 billion dirhams (roughly 2.89 billion USD).
In terms of bilateral loans, European Union countries account for 79.7% of the total, with France at the forefront, holding 39.8 billion dirhams (around 3.98 billion USD), followed by Germany at 28.6 billion dirhams (approximately 2.86 billion USD), and Japan at 11.6 billion dirhams (about 1.16 billion USD).
Looking ahead to subsequent developments and debt servicing, the treasury's external debt balance reached approximately 328 billion dirhams (around 32.8 billion USD) by the end of June 2026, compared to 299.8 billion dirhams (about 29.98 billion USD) at the close of 2025, reflecting an increase of 9.4%. Simultaneously, the public external debt service for 2025 was about 47.4 billion dirhams (approximately 4.74 billion USD), down from 62.1 billion dirhams (around 6.21 billion USD) in 2024. This service was distributed between 30.7 billion dirhams (approximately 3.07 billion USD) for principal payments and 16.7 billion dirhams (about 1.67 billion USD) for interest and commissions.
The government’s debt management strategy focuses on diversifying funding sources and directly utilizing major foreign currencies with competitive interest rates. It also includes employing financial activity techniques to cover currency and interest rate risks. Financial authorities assert that this proactive direction aims to alleviate the burden on the public treasury while maintaining the macroeconomic balances of the kingdom, ensuring support for large structural projects, particularly social protection programs and public investment, without compromising national financial sovereignty.
As reported by elaph.com.
