Debt Crisis in the Moroccan Subsidy System: Undesirable Gift for Islamist PM
New PM Benkirane inherited challenging socio-economic environment
There is a bumpy road ahead for the new government leader in Rabat. As he enters his offices, energized by a fresh electoral victory with the prospect of governing a nation, Prime Minister Entrance has to deal with the country’s finances, and what he sees does not please him.
The numbers in the nation's books look unsettling and could force him to either make unpopular decisions to control spending or maintain a an unsustainable status quo to avoid popular backlash. It turns out, the government’s debt on its payments to cover the nation’s subsidies of energy products reached an unprecedented heights, worsening the State’s global debt level. While in the past a ceiling of MAD 6 billion would have triggered crisis mode and a government reaction of sort, this time the unpaid government bill has topped MAD 20 billion accumulated in less than five months. The situation is not getting better. Every month, the bill increases by MAD 4 billion. Continue here | Click here to subscribe
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