Moroccan farmers receive debt relief to compensate drought losses

10/05/2007

[Getty Images] Laenser

Some 99,000 farmers had more than $360m in debt written off, Moroccan Agriculture Minister Mohand Laenser revealed Wednesday (May 9th). The debt relief has targeted small farmers who face problems paying off their loans, notably due to a drought that has seriously affected crops this year. In an effort to promote investment in the agricultural sector, the government, in co-operation with Credit Agricole, has reduced interest rates on farming loans to 5% for rural loans and 5.5% for investment loans. Laenser recalled that some 45% of Moroccans live in the countryside and work mainly in the farming sector, which represents 12% to 20% of GDP and is the principal source of employment in the country.