Arab Monetary Fund supports Morocco’s financial & banking sector with $277 Mln loan

The Arab Monetary Fund has agreed to provide Morocco a $277 Million loan to support the country’s financial and banking sector and enable it maintain its economic stability amid a soaring global inflation due to the Russia-Ukraine war.

The loan, announced on Thursday by the fund, will strengthen control & supervision of Moroccan financial and banking sector, promote sustainable financing, enhance financial inclusion and the legal framework governing the capital market.

The AMF supports the efforts of its member countries to implement economic and structural reforms to counter various challenges. It also provides technical advice in the field of economic, fiscal, and financial policies, and offers training for government officials.

According to the International Monetary Fund (IMF), 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 Covid-19 pandemic, drought seasons and the spillovers from Russia-Ukraine war.

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.