The board of directors of the International Monetary Fund (IMF) on Monday evening approved a two-year financing agreement with Morocco, worth 5 billion dollars.
The fund said in a statement on Tuesday that the line of credit (financing) is designed for crisis prevention purposes and that “Morocco is eligible to benefit from the flexible line of credit thanks to its policies, institutional policy frameworks and its solid economic fundamentals”.
The agreement between the IMF and Morocco will strengthen Morocco’s external reserves and provide temporary insurance against plausible tail risks on a temporary basis, according to the statement.
Since 2012, Morocco has benefited from four consecutive agreements of this type of financing, each amounting to approximately 3 billion dollars.
“Morocco’s very strong economic fundamentals and institutional policy frameworks, as well as its track record of very strong policy implementation, all justify moving to the Flexible Line of Credit (LCM) arrangement,” said the IMF.
“Morocco’s very strong macroeconomic policies have enabled its economy to maintain its resilience in the face of negative shocks, in particular the pandemic, two droughts and the repercussions of the Russian war in Ukraine”, we read again from the same source.
However, the Fund pointed out that the Moroccan economy remains exposed to the risks of deterioration of the global economic and financial environment, increased volatility of commodity prices and recurrence of droughts.
