In 2024, Morocco reached an unprecedented milestone in its external debt repayments, with the total cost—principal and interest combined—surpassing $7 billion. This record figure underscores the growing strain on the country’s public finances at a time when the global cost of borrowing is rising sharply. The World Bank has already warned that developing nations are now grappling with their worst debt crisis in over 50 years.
For Morocco, the burden is increasingly visible in its economic indicators. Servicing the external debt now consumes 13% of the nation’s export revenues. Put another way, for every 100 dirhams Morocco earns from international trade, 13 are immediately funneled back to foreign creditors. Debt payments also account for 6% of the country’s gross national income, highlighting the structural weight of this obligation on the broader economy.
Breaking down the numbers, Morocco’s total external debt stock has climbed to $67.99 billion—just shy of its all-time high. Of that, $57.2 billion is long-term debt, nearly 80% of which is backed by the public sector. In 2024 alone, $5.22 billion went toward repaying principal, while $1.79 billion covered interest payments.
Yet despite the mounting repayments, borrowing has not slowed. Morocco took on $8.61 billion in new long-term loans this year, largely from multilateral institutions and private lenders. While these fresh funds have helped refinance some existing obligations, they also deepen the country’s exposure to a global borrowing environment marked by the highest interest rates seen in more than two decades.
The World Bank remains Morocco’s leading external creditor, holding 21% of the country’s public foreign debt. It’s followed by the African Development Bank with 10%. Bilateral lenders account for 15%—with Germany, France, and Japan at the forefront—while commercial loans and bonds make up a significant 36% of the total.
Short-term external debt, on the other hand, has declined noticeably. It currently stands at $7.5 billion, down from $10.1 billion in 2023. The Kingdom has also reduced its reliance on IMF credit lines and special drawing rights, signaling a shift in its funding strategy.
However, the World Bank warns of a growing temptation that could bring new risks: an overreliance on domestic borrowing. While tapping into local markets might seem like a more accessible option, it comes with serious trade-offs—chief among them, increased competition for credit with the private sector, shorter debt maturities, and higher refinancing costs. These factors underline the urgent need for Morocco to manage its debt with greater precision and caution moving forward.
