FOM Newsletter July 2002
Morocco Week in Review July 20, 2002 

Morocco's economy globally scored positive results in 2001, says Bank Al Maghrib, Morocco's central bank, in its 2001 annual report, that was handed over Tuesday in Rabat to King Mohammed VI by the bank's wali, Mohamed Seqqat. The gross domestic product increased by some 6.5 percent following a 25 percent rise in agricultural production after two consecutive years of drought, said Seqqat when presenting to the sovereign a summary of the report. The increase is also the result of a progression of more than 4% of secondary and tertiary activities, as compares to the rate of the past two years.  According to the report, the evolution was combined to a noteworthy consolidation of fundamental balances, thanks to an increase of tourism returns and a rise of remittances by Moroccan expatriates, in addition to the purchase of a part of MAROC TELECOM capital by a private operator for some 23.3 Billion Dirhams (US $ 2.22 Bln). The balance of payment scored a surplus, equal to 5 percent of the GDP, and the budget deficit was curbed to 2.7 percent, i.e. to a rate lower than the 3 percent initially set.  Prices remained stable despite a 5 percent devaluation of the Dirham and employment, which remains on top of the authorities' concerns, scored some improvement. The report also noted that exports have globally increased, despite the international lethargy, while imports stagnated after the increase recorded in 2000. The deficit of the trade balance was slightly decreased and the country's hard currency reserves recorded a noteworthy increase, representing nearly 12 months of imports. Director of the king's office, Mohamed Rochdi Chraibi, and charge de mission at the royal office, Fadel Benyaich, were present at the audience when Seqqat handed the bank's report to the sovereign.

http://www.arabicnews.com/ansub/Daily/Day/020718/2002071823.html

Morocco and the Islamic Development Bank (IDB) signed Tuesday in Rabat two loan and guarantee agreements worth US$ 7.33 million (78 millions DH). The amount will co-fund rural electrification projects worth 140 millions DH.  The project to supply electricity to 238 villages (12,528 households) in the provinces of Tetuan, Ifrane and Safi, is part of the government program meant to connect 69 percent of the rural world to the national grid by 2004. The signing ceremony was chaired by Moroccan minister of economy, finance, privatization and tourism, Fathallah Oualalou, and director of the IDB regional bureau in Rabat, Hani Salem Sounboul. The two men voiced satisfaction at the cooperation relations existing between Morocco and the Islamic financial institution, and at IDB's backing to Morocco's economic and social development. IDB had previously contributed $38.96 million to another electrification project that benefited 41,715 households.

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