Morocco will issue two Eurobonds in 2019 and 2020, Abdellatif Jouahri (photo), governor of the central bank, announced on March 19, 2019.

During the press conference announcing the operation, the official indicated that MAD11 billion will be raised during each operation. According to the governor, the operations are aimed at increasing Morroco’s foreign reserves from MAD231 billion in 2018 to MAD236 billion to cover five months of imports.

Because of a drop in domestic debts, the public debt will rise from 65% of GDP in 2018 to 65.8% of GDP in 2019 before dropping to 65% again in 2020.

The last Eurobond issued by Morroco was in 2014. The only North African country to be of investment grade, according to rating agencies, Morocco raised MAD1 billion at 3.702% interest rate with a 10-year maturity period.

Analysts forecast a similar interest rate in view of the country’s improved economy.

The budget deficit is going towards the 3.5% level against 4.9% in 2014. Its foreign reserves already cover more than five months imports and GDP growth should be 2.7% in 2019 and 3.9% in 2020.