WB Offers Morocco Precautionary Loan of $275 mln to Manage Disasters

Morocco and the World Bank inked a deal under which the North African country shall benefit from a precautionary line of 275 million dollars in the case of natural disasters.

The deal was signed in Rabat by Finance Minister Mohammed Benchaaboun and Maghreb director at WB Jesko Hentschel.

The World Bank had said in a statement in December that the precautionary line will help Morocco manage the financial impact of natural disasters and climate-related shocks as well as to manage the institutional framework for disaster risk management.

The deal is also meant to support reforms designed to strengthen the financial, governance and operational framework of the recently created solidarity fund against catastrophic events.

The fund for disaster relief will inter alia pay compensations to disaster-stricken populations. It also serves as a complement of private insurance by offering compensation to the uninsured and the most vulnerable.

Natural hazards including flash floods and drought have left a devastating impact on many rural areas.