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Morocco sees 2014 borrowing needs at 2.5bn euros

The government did not announce when it will issue foreign bonds

Published: Updated:

Moroccan Finance Minister Mohammad Boussaid said on Tuesday Morocco's external borrowing needs this year will reach 2.5 billion euros to plug the deficit estimated at 4.9 pct of the gross domestic product (GDP).

It is not clear, however, when the government will issue foreign bonds, the minister added on the margin of the Arab finance ministers meeting in Tunis. Last year Boussaid said Morocco may raise 1 billion euros in international bonds issue at the start of 2014.

Morocco plans to cut its budget deficit to 4.9 percent of gross domestic product in 2014 from an estimated 5.5 pct in 2013 by trimming spending.

The North African kingdom is struggling to fix public finances that were hit by the euro zone crisis, Arab Spring revolts and drought, but it plans tough reforms in the next year on subsidies, taxation and pensions.

Earlier this year, it had ended subsidies of gasoline and fuel oil and had started to cut significantly diesel subsidies.