Spain rejects Sahara link to Morocco’s rising debt

Spain’s government attributed Morocco’s growing debt to Madrid to state-backed financing used to support Spanish companies abroad, rejecting a suggested link to its 2022 policy shift on the Sahara, according to a written response filed with the Senate.

The reply followed a question from Popular Party senator Natalia Ucero Pérez, who asked whether the rise in Morocco’s obligations to Spain was directly connected to Madrid’s decision to endorse Morocco’s autonomy proposal as the most serious and credible basis for resolving the Sahara dispute.

The government said Morocco’s debt arose primarily from official instruments supporting the international expansion of Spanish companies and from development financing.

The debt refers to Spain’s position as a bilateral creditor rather than Morocco’s overall public debt.

Madrid said the Ministry of Economy, the state credit institute ICO and export credit insurer CESCE regularly pursue repayment through bilateral and multilateral channels.

Before extending official financing, authorities assess a country’s solvency, liquidity, political and commercial risks and its ability to repay over the short, medium and long term, the response said.

Debt recovery remains a priority, while exposure limits are set through sustainability assessments based on OECD and International Monetary Fund criteria.

Morocco is classified in Group 3 under the OECD’s country-risk system, the Spanish government said.

It also cited the IMF’s March 2026 review, which assessed Morocco’s public debt as sustainable with a high degree of probability, although the fund classified the broader risk of sovereign stress as moderate.

The government said the financing instruments were governed by Spain’s 2017-2027 economic internationalization strategy, which seeks to increase the overseas presence of Spanish businesses, strengthen exports and investment and support domestic employment.

It said changes in Morocco’s relative position as a debtor reflected the timing of new financing, repayments and increased Spanish business activity in the country.