Debt Crisis in the Moroccan Subsidy System: Undesirable Gift for Islamist PM
2001 protest in Casablanca. Grievances remain the same in 2012
The North Africa Journal | By Arezki Daoud
There is a bumpy road ahead for the new government leader in Rabat. As he enters his offices, both excited and energized by a fresh electoral victory with the prospect of governing a nation, Prime Minister Benkirane has to deal with the country’s accounting books, and what he sees does not please him. The ledger looks dangerous and could force him to chose between making unpopular decisions or maintain a financially unsustainable status quo.
It turns out, the government’s debt on its payments to cover the nation’s subsidies of energy products reached an unprecedented level, 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 | Contact us to discuss this topic
.
