The Executive Board of the International Monetary Fund (IMF) has approved a new 24-month arrangement for Morocco under the Precautionary and Liquidity Line (PLL) equivalent to Special Drawing Rights (SDR) 3.2351 billion (about US$5 billion), which is 550 percent of Morocco’s quota at the IMF.
“The access under the arrangement in the first year will be equivalent to SDR 2.941 billion (about US$4.5 billion, 500 percent of quota), rising in the second year to a cumulative US$5.0 billion,” said an IMF statement sent to PANA in New York on Tuesday.
It recalled that Morocco’s first two-year PLL arrangement was approved on 2 August 2012.
“The Moroccan authorities have stated that they intend to treat the arrangement as
precautionary, as they have done with the 2012 PLL, and do not intend to draw under the
arrangement unless Morocco experiences actual balance of payments needs from a significant
deterioration of external conditions,” the statement said.
According to IMF, the PLL arrangement will allow the authorities to pursue their homegrown
reform agenda, aimed at achieving rapid and more inclusive economic growth while providing them with useful insurance against external shocks.
The PLL was introduced in 2011 to meet more flexibly the liquidity needs of member countries with sound economic fundamentals and strong records of policy implementation, but with some remaining vulnerabilities.
IMF Deputy Managing Director and acting Chairman of the Board, Mr. Noayuki Shinohara, said:
“Morocco’s sound economic fundamentals and overall strong record of policy implementation
have contributed to a solid macroeconomic performance in recent years.”
“Despite a difficult external environment,” he pointed out, ”the authorities made important strides in reducing vulnerabilities, rebuilding policy space and addressing medium-term challenges over the course of the first arrangement supported by a PLL.”
“The PLL have been consolidating Morocco’s fiscal position while pursuing an agenda of
structural reforms to address vulnerabilities, strengthen competitiveness, and promote higher
and more inclusive growth and the significant progress made in reforming the subsidy system
is particularly commendable,” he added.
Morocco has been a member of the IMF since 1958 and has a quota of SDR588.2 million
(about US$903.4 million).