Morocco, on Monday, repaid in advance a part of the funds drawn on the Precautionary and Liquidity Line (PLL) of the International Monetary Fund (IMF), amounting to 651 million SDR (Special Drawing Rights), which equals US$ 936 million or MAD 8.4 billion.
This operation, which will be effective as of January 8, 2021, will help relieve Morocco’s future financial commitments while reducing the costs thanks, in particular, to the very favorable terms of the latest international Treasury issue, says a joint press release by the Ministry of Economy, Finance and Administration Reform and Bank Al Maghrib (BAM, Central Bank).
“This operation will strengthen the confidence of investors and markets in our economy,” the two institutions announced.
The operation was unanimously welcomed by the IMF Executive Board during its December 18 meeting dedicated to reviewing the report on the Article IV Mission with Morocco.
Since 2012, Morocco benefited from four successive PLL arrangements with the IMF. On April 7, 2020, the Moroccan authorities purchased all available resources (about US$ 3 billion) under the PLL arrangement.
This was the first time the authorities drew on funds available under the PLL, to cope with the unprecedented shock of the COVID-19 pandemic.
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