Morocco receives IMF’s Precautionary Liquidity Line worth $3.47 bln

The Executive Board of the International Monetary Fund (IMF) approved on July 22 a two-year arrangement for Morocco under the Precautionary and Liquidity Line (PLL) for 3.47 billion dollars.

The new PLL arrangement will provide Morocco with useful insurance against external shocks as the authorities pursue their reform agenda aimed at further strengthening the economy’s resilience and fostering higher and more inclusive economic growth, the IMF said in a statement on its website.

The IMF stressed the precautionary character of the arrangement that can only be accessed by the Moroccan government in the event of an actual deterioration of the balance of payments due to external conditions.

During the first year, Morocco will have precautionary access to $1.73 billion, says the statement.

The PLL was introduced in 2011 to meet the liquidity needs of member countries with sound economic fundamentals and strong records of policy implementation but with some remaining vulnerabilities.