The International Monetary Fund approved a $5 billion credit line for Morocco, enhancing the North African nation’s buffers and providing insurance against possible risks.
(Bloomberg) — The International Monetary Fund approved a $5 billion credit line for Morocco, enhancing the North African nation’s buffers and providing insurance against possible risks.
The IMF’s executive board approved the facility on Monday, and it’s available for two years, the Washington-based lender said in a statement on its website. Moroccan authorities stated their intention to treat the arrangement as precautionary.
“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,” Deputy Managing Director Antoinette Sayeh said. “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 which the facility provides some protection, she said.
Morocco in prior years had access to the IMF’s so-called precautionary and liquidity line, another instrument.
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