IMF approves $4.5b flexible credit line for Morocco

The International Monetary Fund (IMF) has approved on Wednesday a new two-year, $4.5 billion Flexible Credit Line (FCL) arrangement for Morocco, replacing the previous agreement. The Moroccan government intends to use the facility as a precautionary measure to bolster external buffers against economic risks.

This is Morocco’s second FCL, with reduced access as part of a gradual exit strategy. The IMF highlighted Morocco’s strong policy track record and resilience despite repeated droughts and external shocks, including the pandemic and the 2023 earthquake.

Moreover, the IMF projects Morocco’s economy to grow 3.6 per cent in the medium term, supported by infrastructure projects and structural reforms aimed at fostering inclusive and sustainable development. Despite this positive outlook, the country remains vulnerable to global economic uncertainty, rising commodity prices, and climate-related risks.

Deputy Managing Director Kenji Okamura commended Morocco’s fiscal and financial management, noting its ability to secure favourable international bond issuances. The IMF also stressed that Morocco’s commitment to structural reforms and macroeconomic stability remains firm.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama