Morocco received 3.3 billion MAD in foreign financing last March, the first installment of a total 13 billion MAD ($1.3 billion) loan signed with the International Monetary Fund (IMF) under the Resilience and Sustainability Facility program.
Highly informed sources told Hespress that the first installment was obtained after meeting with IMF experts and assessing Morocco’s commitment to several measures to strengthen the economy’s resilience to cope with the repercussions of climate change–be they related to promoting renewable energy or addressing water scarcity.
The IMF approved this loan for the Kingdom in September 2023. It extends for 18 months and seeks to support the transition to a more environmentally friendly economy and help fortify preparedness as well as resilience to natural disasters, including those caused by climate change.
This is the first time Morocco has received financing from the IMF since 2020, when the Kingdom resorted to using the Precautionary and Liquidity Line to obtain $3 billion in financing to mitigate the social and economic impact of the COVID-19 pandemic.
It’s expected that the remaining installments of the $1.3 billion loan will be disbursed by the end of this year and the beginning of next year, as experts from the fund continue to work with Moroccan authorities, especially the Ministry of Economy and Finance, to implement the necessary procedures outlined in the agreed-upon work program.
Experts from the IMF are anticipating continued implementation of Morocco’s national program for providing drinking water, irrigation water, and plans to achieve zero emissions by 2050.
In this regard, a recommendation has been made to Moroccan authorities to increase the value-added tax on fossil fuels within the specified timeframe.
Morocco also has another agreement with the Fund called the “Flexible Credit Line,” valued at $5 billion, extending until April 2025.
Moroccan authorities have decided to treat this substantial funding as insurance and protection against future potential risks.
Earlier this month, the Executive Board of the International Financial Institution welcomed “the resilience of the Moroccan economy in facing shocks.” Overall economic policies and institutional frameworks were praised as well.
The Board approved the first review of the “Flexible Credit Line” and the “Resilience and Sustainability” arrangement.
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