The gross borrowing by Morocco’s Treasury has fallen by 49.7%, reaching 78 billion dirhams (MMDH) by the end of the first five months of 2024, according to the Directorate of Studies and Financial Forecasts (DEPF).

This decline affected short-term maturities, which plummeted by 95.6% to 2.7 MMDH, accounting for just 3.5% of the total borrowing. Medium-term maturities also saw a significant drop of 47.4%, amounting to 33.7 MMDH, representing 43.2% of the total. Conversely, long-term maturities surged by 38.4% to 41.6 MMDH, making up 53.4% of the borrowings compared to 19.4% the previous year.

On the other hand, Treasury repayments decreased by 61.3% year-on-year, totaling 46.8 billion dirhams by the end of May 2024.

Given these changes, net Treasury borrowing decreased by 8.8% compared to the end of May 2023, standing at 31.2 MMDH.

As a result of these developments, the outstanding amount of Treasury bonds issued by auction reached 730.6 MMDH at the end of May, up 1.2% from the end of April 2024 and 4.5% from the end of December 2023.

The structure of this outstanding debt continues to be dominated by long-term maturities, whose share increased by 1.9 points to 64.9%. Medium-term maturities remained almost unchanged at 32.2%, while the share of short-term maturities, which remains low, decreased by 1.8 points to 2.9%.

The volume of submissions in the auction market fell by 56.6% year-on-year, reaching 137.4 MMDH by the end of May 2024. The decline was particularly significant in short-term maturities, which dropped by 90.9% to 19.2 MMDH, and in medium-term maturities, which fell by 23.1% to 66.8 MMDH.

In contrast, the volume of long-term maturities submitted nearly tripled, rising from 19.7 MMDH at the end of May 2023 to 51.4 MMDH by the end of May 2024.