IMF approves $415m disbursement for Morocco
The International Monetary Fund (IMF) Executive Board said on Tuesday that it had completed the second review of Morocco’s Resilience and Sustainability Facility (RSF), approving an immediate disbursement of SDR 312.5 million (about US$415 million). This brings total disbursements under the RSF arrangement to SDR 562.5 million (about US$747 million).
Despite a challenging 2024 drought affecting agriculture, IMF said Morocco’s non-agricultural sector remains strong, with rising domestic demand. Inflation has eased, and Bank Al-Maghrib (BAM) lowered its policy rate in June. The fiscal deficit is on track to meet budget targets, supported by strong revenues from tourism, exports, and remittances.
“Morocco continues to make progress in bolstering its resilience against climate change and seizing the opportunities from decarbonisation, under the RSF arrangement.” IMF statement read. However, the Fund said “significant investments in water infrastructure aim at addressing water scarcity and will need to be complemented by demand management reforms.”
“Continued progress toward liberalising the electricity markets, a key dimension of the RSF, is needed to boost private sector participation in renewable energies. This will not only help Morocco achieve its Nationally Determined Contributions (NDC) targets but would also reduce its reliance on imported fuels, improve firms’ competitiveness, and help create jobs.”
Attribution: IMF
Subediting: Y.Yasser
