عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Moroccan Government Uncaps External Loans

People wear protective masks following the outbreak of the coronavirus (file photo: Reuters)
People wear protective masks following the outbreak of the coronavirus (file photo: Reuters)
TT
TT

Moroccan Government Uncaps External Loans

People wear protective masks following the outbreak of the coronavirus (file photo: Reuters)
People wear protective masks following the outbreak of the coronavirus (file photo: Reuters)

Morocco’s government council decided to uncap the country’s external loans, currently limited at around $3.1 billion, as announced in the 2020 budget and approved by the parliament last December.

This could help Morocco better respond to the COVID-19 crisis and mitigate its impact on the most affected economic sectors, such as tourism and transportation.

The government also hopes this will help in managing the consequences of the scarcity of rains during the winter season which has negatively impacted agriculture in many areas in the country.

The Moroccan economy is facing a difficult situation due to the lack of currency inflow resulting from tourism, remittances, and foreign investment. In addition, many exports sectors were halted such as auto industry, textile and clothing industry, and agricultural products.

The cabinet issued a statement saying it authorized uncapping of external loans to ensure the influx of hard currency into the country, especially through international loans, given that many sectors were affected by recent developments, such as tourism, foreign direct investment, and exports.

Minister of Economy Mohamed Benchaaboun suggested a number of measures relating to the review of the 2020 budget in light of the emerging conditions of the coronavirus and drought.

Benchaaboun proposed redefining priorities at the level of future expenditures for the government and public institutions. He emphasized the need to accelerate contracting dues, especially those of very small, small, and medium enterprises to enable them to fulfill their financial obligations and maintain jobs.

The Minister hoped those measures would help alleviate the social repercussions of this crisis.

Benchaaboun pointed out that these reviews are imposed by the global and national economic context affected by the negative repercussions of the coronavirus pandemic.

The developments require urgent and fast measures to limit the effects of this pandemic, especially by directing public spending towards priorities at the health, social, and economic levels, according to the Minister.

Most Viewed

 
 
Business

US Treasury Targets Russia's Gazprombank with New Sanctions

FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
TT
TT

US Treasury Targets Russia's Gazprombank with New Sanctions

FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo

The United States imposed new sanctions on Russia's Gazprombank on Thursday, the Treasury Department said, as President Joe Biden steps up actions to punish Moscow for its invasion of Ukraine before he leaves office in January.
The move, which wields the department's most powerful sanctions tool, effectively kicks Gazprombank out of the US banking system, bans its trade with Americans and freezes its US assets, Reuters reported.
Gazprombank is one of Russia's largest banks and is partially owned by Kremlin-owned gas company Gazprom. Since Russia's invasion in February 2022, Ukraine has been urging the US to impose more sanctions on the bank, which receives payments for natural gas from Gazprom's customers in Europe.
The fresh sanctions come days after the Biden administration allowed Kyiv to use US ATACMS missiles to strike Russian territory. On Tuesday, Ukraine fired the weapons, the longest range missiles Washington has supplied for such attacks on Russia, on the war's 1,000th day.
The Treasury also imposed sanctions on 50 small-to-medium Russian banks to curtail the country's connections to the international financial system and prevent it from abusing it to pay for technology and equipment needed for the war. It warned that foreign financial institutions that maintain correspondent relationships with the targeted banks "entails significant sanctions risk."
"This sweeping action will make it harder for the Kremlin to evade US sanctions and fund and equip its military," Treasury Secretary Janet Yellen said. "We will continue to take decisive steps against any financial channels Russia uses to support its illegal and unprovoked war in Ukraine."
Gazprombank said Washington's latest move would not affect its operations. The Russian embassy in Washington did not respond to requests for comment.
Along with the sanctions, Treasury also issued two new general licenses authorizing US entities to wind down transactions involving Gazprombank, among other financial institutions, and to take steps to divest from debt or equity issued by Gazprombank.
Gazprombank is a conduit for Russia to purchase military materiel in its war against Ukraine, the Treasury said. The Russian government also uses the bank to pay its soldiers, including for combat bonuses, and to compensate the families of its soldiers killed in the war.
The administration believes the new sanctions improve Ukraine's position on the battlefield and ability to achieve a just peace, a source familiar with the matter said.
COLLATERAL IMPACT
While Gazprombank has been on the administration's radar for years, it has been seen as a last resort because of its focus on energy and the desire to avoid collateral impact on Europe, a Washington-based trade lawyer said.
"I think that the current administration is trying to put as much pressure and add as many sanctions as possible prior to January 20th to make it harder for the next administration to unwind," said the lawyer, Douglas Jacobson.
Officials in Slovakia and Hungary said they were studying the impacts of the new US sanctions.
Trump would have the power to remove the sanctions, which were imposed under an executive order by Biden, if he wants to take a different stance, Jacobson said.
After Russia's invasion in 2022, the Treasury placed debt and equity restrictions on 13 Russian firms, including Gazprombank, Sberbank and the Russian Agricultural Bank.
The US Treasury has also worked to provide Ukraine with funds from windfall proceeds of frozen Russian assets.