Moroccan Minister of Economy and Finance: We plan to sell a stake in Morocco Telecom next year

The Moroccan government could consider selling shares to the Moroccan telecommunications operator, the country's largest telecommunications operator, when it aims to raise 5 billion dirhams ($ 527 million) from the sale of Public companies, said Tuesday the Moroccan Minister of Economy and Finance, Mohamed Benshaboun.

Etisalat owns 53% of the capital of Etisalat Maroc, listed on the Casablanca and Euronext Paris stock exchanges, while the Moroccan government holds 30%. The government will open more capital from state-owned enterprises to private investors and restructure state-owned enterprises, said the minister at a press conference. He added that it was necessary to restructure public institutions such as the National Railway Bureau before considering privatization.

Privatization and restructuring of state-owned enterprises will help the government raise up to 8 billion dirhams to reduce the budget deficit to 3.3 percent next year, Benshaboun said. Without privatization, the budget deficit will reach 3.7% of GDP in 2019. The budget deficit is expected to increase to 3.8% this year, compared to the original target of 3% set in the 2018 budget. -he declares.

An increase in spending on social services, including education, health and youth employment, would result in additional financing needs of 27 billion dirhams. The draft budget, which was submitted to Parliament on Friday, aims to raise two billion dirhams in 2019 and 2020 on a corporate tax of 2.5% on the net profits of companies whose annual net profit exceeds 40 million. dirhams.

The draft budget forecasts economic growth of 3.2% next year, compared to 3.6% this year, while inflation is expected to fall below 2%.