May 24, 2020 – 1:30 a.m. –
The management of the coronavirus by Morocco continues to appeal. The Montaigne Institute explains that the kingdom has deployed financial means and taken many drastic measures, which have enabled it to avoid 6,000 deaths. The current health situation in Morocco, the economic impacts and the strategy for ending the crisis, were mentioned in an analysis by the institute published in its weekly letter.
The author of the analysis said that the measures taken and the financial means deployed by Morocco in the fight against the coronavirus pandemic, have enabled it to prevent 6,000 deaths. These are the closure of all borders, the closure of schools, preventive health measures and containment. To all of the above, he added the creation, on March 25, of the Special Fund for the management of the pandemic, endowed with 10 billion dirhams, or 934 million euros. The extension of the state of emergency is motivated by the authorities’ desire to maintain vigilance in monitoring the epidemic in order to avoid the appearance of new cases of contamination, the author of the analysis underlined. the Montaigne Institute, which considers it a wise option.
On lifting the containment, he stressed that a deconfinement strategy being developed and several scenarios are being studied. Deconfinement, to be effective, will be gradual, taking into account the evolution of the epidemiological situation in the different regions, he thinks. He went on to explain that the modalities of the strategy will depend on scientific data on the nature of the virus, the infrastructure of hospitals, the ability to protect the economy and the purchasing power of consumers. Support measures for the kingdom to enable Moroccan citizens and businesses to curb the health crisis have been taken. As an example, the author mentioned the monthly compensation granted until the end of June 2020, to employees declared to the National Social Security Fund (CNSS), on temporary work stoppage, in companies in difficulty. In total, 132,000 businesses out of the 216,000 affiliated to the Caisse, and nearly 900,000 employees were impacted. The author also recalled the measures taken, through the Economic Watch Committee, to facilitate the financing of the economy by the banking system and meet the liquidity needs of companies.
In relation to the stimulus, the author believes that the question of the sustainability of funding is crucial. The stimulus from the budget and public procurement will impose itself and will be faced with the reduction of ordinary resources, the widening of the budget deficit and the tolerable debt threshold, he estimated. For the author of the analysis, the economic recovery must be accompanied by a properly dosed use of conventional and unconventional techniques. Success depends on a combination of sustainable fiscal policy and flexible monetary policy, he said in conclusion.