Morocco mortgages public assets to cover budget deficits

A recent investigation highlights Morocco's controversial financial strategy of selling hundreds of public properties, including hospitals and educational institutions, only to lease them back through long-term contracts. This initiative, involving 592 assets worth 158 billion dirhams, aims to provide immediate cash flow to the national treasury. The report notes that these arrangements create a form of hidden debt that is not fully reflected in official debt metrics. Recalculating the figures suggests that public debt could rise from the official 67.1% to 75.9% of GDP for 2025. Furthermore, the actual budget deficit would have been significantly higher if the proceeds from these asset sales were not accounted for as revenue. These actions raise serious questions regarding the transparency of the agreements and the long-term financial burden imposed on future generations.