The Executive Board of the International Monetary Fund (IMF) has approved a $3.47 billion aid for Morocco.

The two-year arrangement will be under the precautionary and liquidity line (PLL) for SDR 2.504 billion (about $3.47 billion, or 280 percent of Morocco’s quota), said an IMF statement.

The access under the arrangement in the first year will be equivalent to SDR1.252 billion (about $1.73 billion, or 140 percent of quota).
 
In recent years, the authorities have successfully reduced fiscal and external vulnerabilities and implemented key reforms with the support of two successive 24-month PLL arrangements. The new PLL arrangement will provide Morocco with useful insurance against external shocks as the authorities pursue their reform agenda aimed at further strengthening the economy’s resilience and fostering higher and more inclusive economic growth, said a statement.
 
The authorities have stated that they intend to treat the arrangement as precautionary, as they have done under the previous two arrangements, and they do not intend to draw under the PLL unless Morocco experiences actual balance of payments needs from a significant deterioration of external conditions.
 
Morocco’s first PLL arrangement for SDR4,117.4 million (about $6.21 billion at the time of approval) was approved on August 3, 2012. Morocco’s second 24-month PLL arrangement for SDR3.2351 billion (about $5 billion at the time of approval) was approved on July 28, 2014.
 
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. - TradeArabia News Service