1861 British loan to Morocco

The 1861 British loan to Morocco was made so that Morocco could meet the war indemnity demands of Spain after the Hispano-Moroccan War.^[1]: 25

The 1860 Treaty of Wad Ras brought the war to an end. By terms of the treaty, Morocco was to pay Spain a war indemnity of 20 million duro (equivalent to $4 million 1861 US dollars)—far greater the balance of the Makhzen's treasury.^[1]: 25 To help pay the indemnity, Morocco took a loan from private investors in Britain. The loan, issued by Sirs Robinson, Fleming and Philippe P. Blyth, amounted to £501,200, of which the Sultan actually received £426,000.^[2] The British loan was to be repaid from half of the tariff revenue collected at Moroccan ports, to be overseen by European agents.^{[1]: 25 [2]} The other half of the tariff revenue at Moroccan ports went toward the amount owed directly to Spain.^[2] The 5% interest rate was to be paid in London to the London and County Bank.^[2] The amortization of the loan was biannual.^[2]

Britain had interests in Morocco, as apparent in the Anglo-Moroccan Treaty of 1856 and the activity of John Hay Drummond Hay.^[2]

The annual repayment of the loan represented 12% of Morocco's customs revenues, and it was repaid regularly up until 1882, when the loan was repaid in full.^[2] At this time, the British civil servants appointed by the British government to watch over the customs collection in Moroccan ports left the country.^[2]

References

1. Miller, Susan Gilson (2013). A history of modern Morocco. New York: Cambridge University Press. ISBN 978-1-139-62469-5. OCLC 855022840.
2. Barbe, Adam (August 2016). Public debt and European expansionism in Morocco From 1860 to 1956 (PDF). Paris School of Economics.