World Bulletin / News Desk
Morocco has received the first slice of a $2.5 billion aid package promised by wealthy Gulf Arab states, a Moroccan official said on Friday, part of a pledge designed to cement ties between Arab monarchies in the wake of regional uprisings.
Saudi Arabia, Qatar, the United Arab Emirates and Kuwait agreed in Dec. 2011 to distribute $2.5 billion to both Morocco and Jordan, the only two Arab states outside the Gulf with monarchies.
"The valves are opened and we hope they will continue to be so," said the Moroccan official, who declined to be named and would not say how much money had been transferred.
Sources said the North African country had finalised the agreement with the Gulf Arab states on the margins of the Arab Social and Economic Development Summit in Riyadh last month.
Analysts say the move to forge closer links between regional monarchies is part of a concerted effort to contain the pro-democracy unrest that has ousted autocratic ruling elites in Egypt, Tunisia, Yemen and Libya.
Rabat is anxious to avoid a drop in living standards and to prevent a return to the street protests for political and economic reforms which King Mohammed managed to stifle in 2011 with constitutional reforms, social spending and harsh policing.
The cash-strapped country relies on foreign aid, given its $90-billion economy is heavily exposed to the debt-scarred euro zone through trade, tourism revenues and migrant remittances.
Its trade gap was 7.9 percent higher in December than a year ago at a record 197.2 billion dirhams ($23.6 billion) largely due to a surge of imports of energy and wheat imports, which the state heavily subsidises.
The government now aims to cut the budget deficit to 4.8 percent of the GDP in 2013 from 6 percent in 2012, and projects GDP growth of 4.5 percent this year, after 2.8 percent in 2012.
Morocco raised $1.5 billion via a bond sale in December, which lifted its foreign currency reserves to 140 billion dirhams - but that only covers about four months of import needs, which economists say is an uncomfortably low level.
In August, the International Monetary Fund approved a $6.2 billion precautionary line of credit for the North African country, to be treated as "insurance" in case economic conditions deteriorated further.
EU Commissioner for Jobs, Growth and Investment and Competitiveness Jryki Katainen told reporters "we should forget this phrase" when asked if that meant granting market economy status to China.
Militancy has reduced revenue from oil industry by half, senior official says
The grant was signed Monday in Nairobi to mitigate impact of forced displacements on refugee hosting communities in East Africa
The EU Trade Commissioner Malmstrom made the comment while speaking to Chinese students in Beijing ahead of a China-EU summit.
Trade Ministers Meeting in Shanghai concludes with pledge to push efforts toward trade liberalization and facilitation
Brexit raises uncertainty for consumer, investor confidence, ratings agency says
Bank of England Governor Mark Carney eases lending rules after vote for Brexit
Banca Monte dei Paschi di Siena, or BMPS, is among the banks at the forefront of those concerns with gross bad loans amounting to 46.9 billion euros ($52 billion).
Fund to be used in support of education, health, municipal, socio-economic support for refugees in Turkey
Turkish Statistical Institute says energy prices drive fall in imports
Given all the uncertainty, investors were pricing in a chance of a rate cut with some analysts expecting the Bank of England to consider quantitative easing to cushion the economy
The Egyptian stock index was down 5.8 percent in early afternoon.
The pound sterling sees its lowest level against the the US dollar in over 30 years
A subsequent survey that included people of all ages found that somewhat older Americans also are skeptical of capitalism.