Morocco to inject 28.9 bln dirhams to boost purchasing power

The Moroccan government will inject 28.9 billion dirhams (3.3 billion U.S. dollars) under the 2009 financial act to boost the purchasing power of the country’s population, the official MAP news agency reported on Friday.

The measure is part of the plans to reform the compensation fund which is created to make up for the differences between international and local prices, MAP said, quoting Minister of Economic and General Affairs Nizar Baraka.

The reforms include revising oil products prices as of January 2009, after the international crude prices undergone substantial increases in the past year.

The reform will also touch on updating the legal texts relating to the budget, the report said.

The 2009 plan, the minister added, provides for measures to boost the business environment through tallying investment policies with the standards of the Organization for Economic Cooperation and Development (OECD).

The government hopes to encourage the creation of enterprises by promoting good governance in the business field and organizing national awareness-raising campaigns, the report said.

The surge in global prices has pushed the government to inject more money in the compensation fund in the year.

The 2008 financial act only earmarks 20 billion Moroccan dirhams for the fund, which the government has decided to increase to 30 billion dirhams, for fear that the fund runs out as experts predicted. (One U.S. dollar = 8.72 Moroccan dirhams)