IMF: Morocco gets $5 Bln credit line to enhance its economic resilience & external buffers

The International Monetary Fund (IMF) decided on Monday to provide a $5 billion precautionary flexible credit line (FCL) to Morocco to enhance the country’s external buffers, and support its economic resilience and structural reforms.

Ms. Antoinette Sayeh, IMF Deputy Managing Director, said : “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”.

The Moroccan authorities “remain committed to rebuilding policy margins, delivering a comprehensive policy response to new shocks, and continuing to implement the comprehensive structural reforms needed to make economic growth stronger, more resilient, and more inclusive,” she underlined in a statement.

According to IMF experts, 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.

Since 2012, Morocco had benefited from four successive Precautionary and Liquidity Line (PLL) arrangements, amounting each to about $3 billion, thanks to its very strong policies, institutional policy frameworks, economic fundamentals, and sustained track records.

The Morocco authorities intend to exit the precautionary FCL arrangement after two years depending on the evolution of external risks.