Morocco launches bond issue to reduce debt servicing

Morocco launched on Monday a bond issue, worth 138.7 million euros (one billion FF), guaranteed by the French development fund, a Moroccan official announced here.

The bond issue, extending over 5 years, will finance the servicing of Morocco's debt to France, exceeding 9% in interest rate.

Moroccan Minister of Economy and Finance Fathallah Oualalou, who launched with his French peer, Dominique Straus-Khan, the economic events of the Kingdom's yearlong festival in France, "Le Temps du Maroc," said the decision was made during last October's visit to France by Moroccan Prime Minister Abderrahmane Youssoufi. He added that it will reduce the interest rate of Morocco's debts from more than 9% to some 3.9%.

Christian Deseglise, the official in charge of emerging markets at the CCF (Credit Commercial de France) which is supervising the bond issue, told MAP the operation marks the start of Morocco's activities on the market in euros.

He added that the bond issue was already subscribed before its release, with 51% of subscribers from France, 23% from Switzerland and Benelux countries (Belgium, Netherlands, and Luxembourg) and the rest from the UK and Italy.