Morocco’s Makhzen Struggles Under the Weight of Soaring Debt as IMF Extends $1.5 Billion Lifeline

BY: Hana Saada

Algiers- The Moroccan Makhzen, a term referring to the country’s central government and its administrative apparatus, is facing an alarming financial crisis as it continues to sink into debt. This dire situation has prompted the International Monetary Fund (IMF) to step in and offer a lifeline in the form of a substantial loan amounting to $1.3 billion from the newly established Resilience and Sustainability Fund. Morocco’s request for financial assistance from the IMF comes as no surprise, considering the country’s unstable economic condition.

The massive debt burden carried by the Moroccan government has been growing steadily over the years, leaving it in a precarious position and unable to sustain itself without external support. The approval of this loan by the IMF’s Executive Board is a significant development for Morocco.

It not only validates the urgent need for financial aid but also demonstrates the international community’s recognition of the gravity of the situation. However, it is important to note that this loan is merely a short-term solution to a more profound and pervasive problem that requires comprehensive and sustainable reforms. The financial woes faced by Morocco have been exacerbated by several factors, including a rampant corruption.