IMF intends to offer Morocco $5 bln credit line

The International Monetary Fund intends to approve Morocco’s request for a 5 billion-dollar Flexible Credit Line (FCL) during a meeting of its executive board meeting.

“Considering Morocco’s very strong policy frameworks and track record, IMF Managing Director Kristalina Georgieva intends to recommend approval of the FCL arrangement for Morocco when the IMF Executive Board meets again to take a decision in the following weeks,” the IMF said in a statement.

“The IMF stands ready to continue to support Morocco face the risks from the highly uncertain global environment,” it said.

The Moroccan government plans to treat the line as precautionary to safeguard against external shocks as was the case with the 3-billion-dollar precautionary liquidity line that the IMF offered Morocco in 2016.

Morocco raised 2.5 billion dollars in a dual tranche bond last week after it was removed from the FATF list of countries under scrutiny, a decision that the Moroccan government expects to help improve its sovereign rating.