Innovative Financing: 20 Billion Dirhams to Mobilize in 2026, Before Gradual Decline

During discussions on the 2026 finance bill in Parliament, the Minister Delegate for Budget, Fouzi Lekjaa, defended the use of innovative financing as a tool for active management of public assets, rather than a disguised privatization. He emphasized, "These are not privatizations." Lekjaa explained that the state has assets it can monetize to finance new projects while continuing to operate them through rental agreements. After a specified period, the state can reclaim its assets and either re-mobilize or retain them. He noted that the first operations of this kind were initiated in 2019, creating a virtuous cycle: "Today, thanks to one university hospital, we can finance the construction of another," he remarked. In response to political debate labeling these practices as hidden privatizations, Lekjaa posed a rhetorical question: "When a citizen goes to the university hospital, are they seeking treatment or wanting to see the property title of the establishment?" He reminded that the state has always rented premises for its administrations, asserting that these operations do not represent a break from past practices. He specified that this year, rents paid under these arrangements amount to 7 billion dirhams. The 2026 finance bill outlines a planned mobilization of 20 billion dirhams in innovative financing, a decrease from the 34 billion budgeted for 2025. According to Lekjaa, this reduction reflects the government's intention to gradually lessen reliance on this financing method as tax revenues provide more flexibility. "Whenever tax revenues allow, the state will reduce its use of innovative financing," he stated. "If the current trend continues, the next government will likely not need to resort to these operations starting in 2027." This approach aligns with comments made by Abdellatif Jouahri, the Governor of Bank Al-Maghrib, during the September Council. Jouahri stressed the need to regulate these arrangements and treat them as a temporary tool. "We will see what the next finance law holds, but likely, in the 2026-2028 triennial programming, this amount will need to decrease," he said, adding, "We should have regulated them." However, the Governor acknowledged the usefulness of these instruments, which have been validated by the International Monetary Fund (IMF) as effective revenues, particularly to address exceptional needs arising from the health crisis, earthquakes, and years of drought.