Benkirane: To hell with my popularity!
The head of the Moroccan government speaking on Television on Wednesday evening explained the recent increases in fuel prices.
Source : https://www.marocafrik.com/english/Benkirane-To-he...
"This reform is required, it is hard and may cost me my popularity, but the devil to popularity if it can make the future of Moroccans better "
Prime Minister Abdelilah Benkirane appeared on the television programme, specially organized by the SNRT at the request of government, to give explanations and justifications for the price increases of petroleum products in the kingdom.
Benkirane in his attempt to prevent social tensions due to the inflationary effects of the price increases explained that, on one hand the rate increases would have only minimal inflationary impact on consumer products prices
such as (fruits, vegetables, meat ...) and showed a price list in front of the camera to give examples of prices of tomatoes or bananas, saying the increases were necessary to preserve Moroccan economic independence and its ability to decide the future for itself:
"It's like when in a household where the father is unable to ensure the needs of his family, he may be compelled by a court, he will lose his freedom and dignity. It is the same when Morocco turns to international financial institutions to borrow funds. This would damage Morocco's standing and ability to borrow if the public deficit widened more than 7% "Benkirane said. The increase in fuel prices was essential because budgeted subsidy spending would have otherwise increased by 26 billion dirhams to 58 billion dirhams, he explained.
If the increases affected only briefly the poorest social strata, as reassured the head of government, the main affected are the middle classes which will reduce their purchasing power, while they accounted for Morocco on main support for growth in recent years due to domestic consumption driven by them.
He said that those in need of financial aid should set up a bank account to receive financial aid. Moroccan banks have a coverage of barely 50 per cent of the population and with a large informal economy many people are not accustomed to having a bank account.
Estimates for those Moroccans living on less than 2 dollars a day say that it amounts to some 15 per cent of the population and 19 per cent in the rural areas.
Whilst Morocco has appeared sheltered from the global economic crisis particularly with the Eurozone, it is now apparent that it faces the same challenges .
Spain' economic downgrading by Moody's directly affects bond sales and the country's ability to borrow on the international market.
Morocco's foreign currency reserves are now diminishing rapidly and now only cover 4 months of imports. As well as the rise in fuel prices Morocco also faces the cost of increased imports of wheat and sugar brought on by adverse climatic conditons which resulted in a poor crop.
The high level of youth unemployment excerbates the difficulties for the government and increases the pressure.
Prime Minister Abdelilah Benkirane appeared on the television programme, specially organized by the SNRT at the request of government, to give explanations and justifications for the price increases of petroleum products in the kingdom.
Benkirane in his attempt to prevent social tensions due to the inflationary effects of the price increases explained that, on one hand the rate increases would have only minimal inflationary impact on consumer products prices
such as (fruits, vegetables, meat ...) and showed a price list in front of the camera to give examples of prices of tomatoes or bananas, saying the increases were necessary to preserve Moroccan economic independence and its ability to decide the future for itself:
"It's like when in a household where the father is unable to ensure the needs of his family, he may be compelled by a court, he will lose his freedom and dignity. It is the same when Morocco turns to international financial institutions to borrow funds. This would damage Morocco's standing and ability to borrow if the public deficit widened more than 7% "Benkirane said. The increase in fuel prices was essential because budgeted subsidy spending would have otherwise increased by 26 billion dirhams to 58 billion dirhams, he explained.
If the increases affected only briefly the poorest social strata, as reassured the head of government, the main affected are the middle classes which will reduce their purchasing power, while they accounted for Morocco on main support for growth in recent years due to domestic consumption driven by them.
He said that those in need of financial aid should set up a bank account to receive financial aid. Moroccan banks have a coverage of barely 50 per cent of the population and with a large informal economy many people are not accustomed to having a bank account.
Estimates for those Moroccans living on less than 2 dollars a day say that it amounts to some 15 per cent of the population and 19 per cent in the rural areas.
Whilst Morocco has appeared sheltered from the global economic crisis particularly with the Eurozone, it is now apparent that it faces the same challenges .
Spain' economic downgrading by Moody's directly affects bond sales and the country's ability to borrow on the international market.
Morocco's foreign currency reserves are now diminishing rapidly and now only cover 4 months of imports. As well as the rise in fuel prices Morocco also faces the cost of increased imports of wheat and sugar brought on by adverse climatic conditons which resulted in a poor crop.
The high level of youth unemployment excerbates the difficulties for the government and increases the pressure.
Source : https://www.marocafrik.com/english/Benkirane-To-he...