Morocco is immune to subprime crisis, minister

Morocco is immune to the subprime crisis for several reasons, notably the fact that the financial sector does not hold securities or loans in financial institutions or international investment funds affected by subprimes, Economy and Finance minister, Salaheddine Mezouar said on Thursday.

    Speaking at the weekly cabinet meeting on the recent developments of national economy and international environment, Mezouar said that real estate loans in Morocco are mainly fixed interest rate loans with the possibility for variable interest rate loan beneficiaries to opt for fixing these rates under regulated and predictable conditions, Communication minister and Government Spokesperson, Khalid Naciri, said In a press briefing at the end of this meeting.

    The financial situation of Moroccan banking institutions has significantly improved in recent years, thanks mainly to the strengthening of banking supervision in general and the stabilization of the public financial sector in particular, the minister said, adding that the upsurge in the energy and food products had an impact on our balance of payments and our public finances.

    However, he noted, thanks to government support through the fund of compensation, the effects of this upsurge has had no impact on the purchasing power of our citizens, nor on production factors.

    According to the minister, real GDP rose respectively by 7% and 6.7% in the first two quarters of 2008, which would allow for a growth rate estimated at 6.8% this year.

MAP