IMF Chief Recomends Granting Morocco $5Bln Flexible Credit Line

MOROCCO, March 7 - International Monetary Fund (IMF) Managing Director Kristalina Georgieva will recommend to the IMF Board of Directors to grant Morocco a $5 billion Flexible Credit Line over two years, a Fund statement released in Washington said Monday.

"Given the strength of Morocco's economic policy frameworks and balance sheet, IMF Managing Director Kristalina Georgieva intends to recommend approval of a Flexible Credit Line arrangement for Morocco when the IMF Board meets again in the coming weeks to make a decision," the international financial institution stated.

According to the statement, "the IMF's Board of Directors met today in informal session to consider a request from the Moroccan authorities for a two-year arrangement under the Flexible Credit Line (FCL) with the IMF, for an amount equivalent to SDR 3.7 262 billion (about 417% of Morocco's quota, or $5 billion).

"This credit line helps countries protect against external shocks by adopting very strong policy frameworks and establishing a balance of good economic performance thanks to substantial and immediate access to IMF resources, without ex post conditionality," the Fund explains, adding that the Moroccan authorities "intend to treat the credit line as a precautionary device."

"The IMF stands ready to continue to assist Morocco in coping with the risks arising from a very uncertain global environment," the communiqué concludes.

MAP:07 March 2023