IMF Approves US$5bn Flexible Credit Line for Morocco

IMF Approves US$5bn Flexible Credit Line for Morocco

IMF Approves US$5bn Flexible Credit Line for Morocco

The International Monetary Fund (IMF) Executive Board has approved a two-year arrangement for Morocco under its Flexible Credit Line (FCL) in an amount equivalent to SDR 3.7262 billion.

The multilateral lender said since 2012, Morocco had benefited from four successive Precautionary and Liquidity Line (PLL) arrangements, amounting to about US$ 3 billion.

The first PLL was approved on August 3, 2012, and three additional approved on July 28, 2014, July 22, 2016, and December 17, 2018, it explained.

The fourth PLL expired on April 7, 2020, when the authorities purchased all available resources under the PLL to limit the social and economic impact of the COVID-19 pandemic.

This was to allow Morocco to maintain an adequate level of official reserves to mitigate pressures on the balance of payments.

“While the PLL arrangements have served the country well in the past, Morocco’s very strong fundamentals and institutional policy frameworks, sustained track records of implementing very strong policies, and continued commitment to maintaining such policies in the future all justify the transition to an FCL arrangement”.

IMF said FCL arrangement would help Morocco face the challenge of rebuilding the policy space, while accelerating the implementation of its structural reform agenda in an increasingly risky external environment.

Following the Executive Board’s discussion on Morocco, Ms. Antoinette Sayeh, Deputy Managing Director and Acting Chair said, “Morocco’s very strong macroeconomic policies and institutional framework have allowed its economy to remain resilient to the multiple negative shocks that have occurred over the past three years, including the pandemic, two droughts, and the spillovers from Russia’s war in Ukraine.

Going forward, the Moroccan authorities remain committed to rebuilding policy 2 margins, delivering a comprehensive policy response to new shocks, and continuing to implement the comprehensive structural reforms needed to make economic growth stronger, more resilient, and more inclusive.

“Despite this resilience, the Moroccan economy remains vulnerable to a worsening of the global economic and financial environment, higher commodity price volatility, and recurrent droughts.

“Against this background, the FCL arrangement will enhance Morocco’s external buffers and provide the country further insurance against tail risks. “The authorities intend to treat the FCL arrangement as precautionary, and to exit the arrangement as soon as the 24-month period is completed, contingent on the evolution of risks.”#IMF Approves US$5bn Flexible Credit Line for Morocco

Naira Lost 11% as Banks Issue New Update on FX Spending

Advertisement

African Club Association set...

Some of African Football Club’s senior executives and Club Chairpersons will travel to Cairo, Egypt to attend the launch of the African Club Association (“ACA”) on...

Morocco Football Federation lifts...

The Moroccan Football Federation, FRMF, on Monday had a warm reception for the Morocco U-17 team as they arrived from Indonesia where they got to the...

Adobe, Figma Deal Bad...

The United Kingdom (U.K) Competition and Markets Authority said it has provisionally found Adobe's planned $20 billion acquisition of collaboration software company Figma would likely harm...

Paris metro ticket price...

Paris metro ticket prices will almost double during the 2024 Olympics, the French capital region’s president said on Tuesday, adding that residents with passes would be...

Banking Stocks, MeCure Drive...

The Nigerian Exchange (NGX) rides on buying waves due to equities investors' improved buying sentiments on Mecure and banking stocks, detail from Alpha Morgan Capital Limited...

Zenith Bank to Open...

Zenith Bank Plc has signed a Memorandum of Understanding (MoU) with the French Government to establish a subsidiary of Zenith Bank Plc in France, Nigeria’s most...

African Club Association set for launch in Cairo

Some of African Football Club’s senior executives and Club Chairpersons will travel to Cairo, Egypt to attend the launch of the African Club Association (“ACA”) on...

Morocco Football Federation lifts players’ spirits with welcome party for U17 team

The Moroccan Football Federation, FRMF, on Monday had a warm reception for the Morocco U-17 team as they arrived from Indonesia where they got to the...

Adobe, Figma Deal Bad for Innovation- UK Regulator

The United Kingdom (U.K) Competition and Markets Authority said it has provisionally found Adobe's planned $20 billion acquisition of collaboration software company Figma would likely harm...

Paris metro ticket price to double during 2024 Olympics

Paris metro ticket prices will almost double during the 2024 Olympics, the French capital region’s president said on Tuesday, adding that residents with passes would be...

Banking Stocks, MeCure Drive Midday Rally on NGX

The Nigerian Exchange (NGX) rides on buying waves due to equities investors' improved buying sentiments on Mecure and banking stocks, detail from Alpha Morgan Capital Limited...

Zenith Bank to Open Subsidiary in France

Zenith Bank Plc has signed a Memorandum of Understanding (MoU) with the French Government to establish a subsidiary of Zenith Bank Plc in France, Nigeria’s most...

Great sportsmanship as Ronaldo tells ref to overturn penalty he won in Asian Champions League match

Al-Nassr said their forward Cristiano Ronaldo “showed a great deal of sportsmanship” after he urged the referee in Monday’s Asian Champions League game against Persepolis to...

Dangote Refinery to List on Nigerian Exchange

Africa’s richest man, Aliko Dangote, has announced plans to list his $20bn Dangote Petroleum Refinery on the Nigerian Exchange (NGX). The post Dangote Refinery to List on...

Oil Prices Fall Below $80 Amidst Uncertainties

Oil prices fell below $80 per barrel early Monday as members of the Organization of the Petroleum Exporting Countries (OPEC) and allies (OPEC+) prepared to meet...