Morocco's external debt halved in 7 years, minister

Morocco's external debt was reduced by half in seven years, to reach 11 billion Euros, said finance and privatization minister Fathallah Oualalou.

In an interview with "Al Alam" daily, the official said Morocco's external debt "is no longer a problem" and denied some reports that Morocco's internal debt has worsened.

He explained that the reduction of external debt was by far more important than the internal debt increase, recalling that the treasury debt, which accounted for 104% of the GDP in 1994 has declined to 98% in 2004. Internal debt remains "flexible and acceptable," its rates are low and is not subjected to political conditions, he explained.

He further stressed that the present external debt owed by Morocco is an easy-terms one, tied with political and economic conditions, and has flexible and acceptable interest rates and pay-back deadlines.

Morocco's expects the debt owed to the Kuwaiti Fund to be cut as a result of Maroc-Telecom privatization as this debt will be invested in the company's privatization. Similar contacts are ongoing with Spain, France and Italy.