According to a press release from the IMF, the Fund’s Executive Board met today in an informal session, during which exchanges take place on matters concerning the countries and not requiring a formal decision, in order to Consider a request from the Moroccan authorities for a two-year arrangement under the Flexible Credit Line (LCM) with the IMF.
The amount of the line requested by Morocco: $5 billion i.e. more than 51 billion dirhams. This corresponds to 3.726 billion SDRs, approximately 417% of Morocco’s share, says the same source.
This line of credit helps countries protect themselves once morest external shocks, says the IMF, by adopting very solid economic policy frameworks and establishing a track record of good economic performance thanks to considerable and immediate access to IMF resources, without ex-post conditionality.
The Moroccan authorities intend to process the flexible credit line as a precaution.
Given Morocco’s strong economic policy frameworks and track record, IMF Managing Director Kristalina Georgieva intends to recommend approval of an agreement under the Flexible Line of Credit for Morocco when the IMF Executive Board meets once more in the coming weeks to take a decision.
The IMF stands ready to continue to help Morocco deal with the risks stemming from a highly uncertain global environment.