Morocco is immune to the sub-prime meltdown, claims minister…
Economy and Finance Minister, Salaheddine Mezouar said on Thursday that Morocco is immune to the sub-prime meltdown affecting many countries. He asserted that for several reasons, notably the fact that Morocco’s financial sector doesn’t hold loans or securities in financial institutions or international investment funds affected by sub-prime lending.
Crisis, What Crisis?
Addressing a cabinet meeting on the recent developments of the nation’s economy and the international environment, Mezouar said that Morocco property loans in are mainly of the fixed interest variety with the possibility for variable interest rate loan beneficiaries to opt for fixing rates under well regulated and predictable conditions.
“The financial status of Moroccan banking institutions has shown significant improvement in recent years, mainly thanks to the tightening-up of banking supervision and the stabilisation of the public financial sector”. The minister said, adding, “The upsurge in energy and food products had impacted on Morocco’s balance of payments and public finances”.
However, he stated, “Thanks to government support through the compensation fund, the effects of this upsurge has had negligible impact on our citizen’s purchasing power”. The minister concluded, “In real terms, GDP rose by 7% and 6.7% respectively in the first two quarters of 2008 which would allow for an estimated growth rate of 6.8% this year”.
Morocco Property Report 19th September 2008