Search

 

Cablegate: Morocco Receives Usd 500 Mil Saudi Gift

VZCZCXRO6541
RR RUEHBC RUEHDE RUEHKUK RUEHROV
DE RUEHRB #0442 1371751
ZNR UUUUU ZZH
R 161751Z MAY 08
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC 8579
INFO RUEHCL/AMCONSUL CASABLANCA 4092
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHEE/ARAB LEAGUE COLLECTIVE
RUEHLO/AMEMBASSY LONDON 3611
RUEHFR/AMEMBASSY PARIS 5036
RUEHNK/AMEMBASSY NOUAKCHOTT 3748

UNCLAS RABAT 000442

DEPT FOR NEA/MAG
STATE PLEASE PASS TO USTR (BURKHEAD)

SIPDIS
SENSITIVE

E.O.12958: N/A
TAGS: ECON EPET EFIN MO
SUBJECT: MOROCCO RECEIVES USD 500 MIL SAUDI GIFT

REF: RABAT 00265

1. (SBU) On May 6, the Moroccan Foreign Ministry announced that
Saudi Arabia had granted Morocco USD 500 million to help it weather
the shock of oil price increases. Over the previous fortnight
Foreign Minister Taieb Fassi Fihri visited Saudi Arabia, Kuwait and
the United Arab Emirates as a special envoy of the King. To date,
the latter two countries have not made similar offers.

2. (SBU) The GOM, through its Compensation Fund, subsidizes the
retail cost of gasoline, diesel, butane, gas, bread, flour, and
sugar (reftel). The cumulative effect of both rising world oil and
food prices is becoming increasingly apparent in Morocco. After a
year in which it essentially achieved a balanced budget for the
first time in decades, Morocco faces the prospect of a sizeable
budget shortfall that has already led one international ratings
agency to lower its outlook from "positive" to "stable." Many
analysts believe the actual cost of Morocco's Compensation Fund will
double from its current budgeted level of 20 billion MAD (USD 2.7
billion) to more than 40 billion (USD 5.4 billion), as it is based
on a world oil price of 75 USD per barrel.

3. (SBU) Analysts estimate that each increase above 75 USD in the
per barrel price of oil results in an additional 450 million MAD
(USD 60.8 million) obligation for Morocco's Compensation Fund. With
oil reaching USD 125, Morocco is facing a USD 3.0 billion shortfall.
While the USD 500 million Saudi gift (we have assurances it is not
a loan) relieves immediate pressure, we note it represents only 17
percent of the projected shortfall. To date, the MFA has released
no additional details of the deal and has been non-committal and
vague in their responses to our requests for more information.
However, one local economic contact remarked, "Certainly, the Saudi
gift was welcomed, but the government was hoping for more."

RILEY

© Scoop Media

 
 
 
 
 
World Headlines

 

Werewolf: Gordon Campbell On North Korea, Neo-Nazism, And Milo

With a bit of luck the planet won’t be devastated by nuclear war in the next few days. US President Donald Trump will have begun to fixate on some other way to gratify his self-esteem – maybe by invading Venezuela or starting a war with Iran. More>>

Victory Declared: New Stabilisation Funding From NZ As Mosul Is Retaken

New Zealand has congratulated the Iraqi government on the successful liberation of Mosul from ISIS after a long and hard-fought campaign. More>>

Gordon Campbell: On The Current US Moves Against North Korea

If Martians visited early last week, they’d probably be scratching their heads as to why North Korea was being treated as a potential trigger for global conflict... More>>

ALSO:

Gordon Campbell: On The Lessons From Corbyn’s Campaign

Leaving partisan politics aside – and ignoring Jeremy Corbyn’s sensational election campaign for a moment – it has to be said that Britain is now really up shit creek... More>>

ALSO:

Another US Court: Fourth Circuit Rules Muslim Ban Discriminatory

ACLU: Step by step, point by point, the court laid out what has been clear from the start: The president promised to ban Muslims from the United States, and his executive orders are an attempt to do just that. More>>

ALSO:

 
 
 
 
 
 
  • Pacific.Scoop
  • Cafe Pacific
  • PMC