Morocco has secured a new $4.5 billion credit line from the International Monetary Fund (IMF) to strengthen its economy against global and domestic risks.
The Flexible Credit Line (FCL) approved on Wednesday by the IMF Executive Board follows cancellation of the first FCL which was approved in April 2023.
“The Moroccan economy has shown sustained track record of implementing very strong policies and remarkable resilience to recent shocks, although a succession of droughts has severely curtailed agricultural production and pushed unemployment to historical highs,” said Kenji Okamura, Deputy Managing Director, and Acting Chair.
Morocco secured $5 billion under the first arrangement which was also meant to enhance external buffers and provide insurance against plausible tail risks on a temporary basis according to the multilateral lender.
“The new FCL arrangement will also continue to provide Morocco insurance against downside risks. The Moroccan economy remains vulnerable to a worsening of global economic and financial conditions, higher commodity prices, and new occurrence of droughts,” added Okamura.
Morocco qualifies for the FCL by virtue of its very strong institutional policy frameworks and economic fundamentals, its track record of implementing very strong policies, and its continued commitment to maintaining such policies in the future.
