Morocco obtains IMF flexible credit line worth $4.5 bln

The IMF has approved a flexible credit line worth $4.5 billion to help Morocco cushion against external shocks.

The two-year arrangement will be treated by Moroccan authorities as precautionary, the IMF said in a statement.

“The Moroccan economy has shown a sustained track record of implementing very strong policies and remarkable resilience to recent shocks, although a succession of droughts has severely curtailed agricultural production and pushed unemployment to historical highs,” IMF’s Kenji Okamura, Deputy Managing Director, was quoted as saying.

“Morocco’s very strong institutional and policy frameworks have been effective in addressing these shocks, with well-calibrated fiscal, monetary, and financial policies,” he said.

“The recent bond issuance in the international capital markets at very favorable terms is a testament of the authorities’ very strong track record,” he said, noting that “the new FCL arrangement will continue to be instrumental in supporting Morocco’s commitment to such strong policies and reforms.”