The French Development Agency (AFD) announced that nearly 100 million euros will be paid into the Moroccan state budget over the next three months to help finance the kingdom’s socio-economic stabilisation programme and nearly 50 million euros to its public sector.In a press release published on Monday, AFD affirmed its support and confidence in the kingdom’s capacity to deal with the health and economic crisis within the framework of the partnership between France and Morocco.
According to AFD, this involves setting up an immediate response to the increased financing needs of the state caused by the Covid-19 crisis by anticipating the short-term availability of funds from ongoing operations in line with their objectives.
Meanwhile, Morocco and AFD signed a new 100 million euro loan agreement on April 1 to support the improvement of municipal performance, the agency said, noting that this programme aims to strengthen the human and financial capacities of local authorities which are also called upon to provide part of the support responses to the crisis.
The agency stated, on the one hand, that it is participating with its full range of financing instruments in the health, economic and social emergency programme defined by the Moroccan authorities.
On the other hand, in order to prepare a way out of the crisis, it is speeding up the financing of new structural policies particularly to enhancing social protection for citizens and a sustainable recovery of the Moroccan economy.
In addition, AFD Group is expected to mobilise between 400 and 550 million euros in the second half of 2020 to support new structural policies and institutional reforms which will be the levers for a way out of the crisis, the release added.
A programme to support reforms in the health sector and the social protection system is already being prepared with the Ministry of Health.
According to AFD, this programme will contribute to strengthening the performance of the health system and its capacity to better resist and respond to the threats posed by the epidemic by improving the supply of healthcare and supporting the extension of health coverage.