Morocco is considering tapping international debt markets in 2017 with about $1 billion of bond issues, a senior official in the finance ministry said. The North African kingdom needs around $3 billion in financing this year to plug a budget deficit expected to reach 3 percent of gross domestic product. It plans its first-ever Islamic bond in the domestic market in the first half of 2017.
The official, who declined to be named because he was not authorised to speak to the press, said the government sees favourable market conditions this year with attractive rates.
Debt has been a sensitive issue in Morocco in recent years. The country borrowed heavily to cover huge deficits left by heavy public spending during the Arab Spring turmoil and high energy prices in the past few years.
However, the government and the International Monetary Fund expect the ratio of debt to GDP to fall for the first time in years.