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The International Monetary Fund (IMF) announced on March 6, 2023 that its executive board has received from Morocco a $5 billion credit line request.
In its statement, the IMF explained that the credit line contributes to helping countries tackle and safeguard against major economic challenges, including external shocks.
The line helps countries by providing them with “very strong policy frameworks and track records of economic performance with large, upfront access to IMF resources with no ex post conditionality,” noted the statement.
The IMF is set to grant Morocco’s request, taking into account the country’s “very strong policy frameworks and track record,” the statement explained, noting that Moroccan authorities plan to treat the credit line as “precautionary.”
It detailed: “Considering Morocco’s very strong policy frameworks and track record, IMF Managing Director Kristalina Georgieva intends to recommend approval of the FCL arrangement for Morocco when the IMF Executive Board meets again to take a decision in the following weeks.”
The monetary fund also expressed commitment to continue to support Morocco’s efforts to tackle risks stemming from the “highly uncertain global environment.”
The IMF introduced the flexible credit line in 2009 in accordance with the fund’s lending framework. The measure allows countries and beneficiaries to use the credit when they face a cash crunch.
According to the IMF, five countries have had FCL arrangements, including Chile, Colombia, Mexico, Peru, and Poland.
“The FCL has provided a valuable backstop for these countries, and helped boost market confidence during a period of heightened risks,” IMF said.
The IMF has frequently emphasized the importance of cooperation with Morocco, describing the country as a growing international hub for African agricultural services.
“With the collaboration of the IMF, Morocco has weathered past external challenges, strengthened macroeconomic resilience, and spurred economic growth,” the fund said.
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