Flexible credit: Morocco asks IMF for $5 billion line

According to an IMF press release, the Fund’s Executive Board met today in an informal session, during which discussions took place on country-specific issues that did not require a formal decision, to consider a request from the Moroccan authorities for a two-year arrangement under the Flexible Credit Line (FCL) with the IMF.

The amount of the line requested by Morocco: 5 billion dollars or more than 51 MMDH. This corresponds to 3.726 billion SDR, about 417% of the quota of Morocco, says the same source.

This line of credit helps countries protect themselves against external shocks, the IMF says, by adopting very sound policy frameworks and building a track record of good economic performance through substantial and immediate access to IMF resources, without ex post conditionality.

The Moroccan authorities intend to treat the flexible credit line as a precautionary measure.

Given Morocco’s strong policy frameworks and track record, IMF Managing Director Kristalina Georgieva intends to recommend approval of a Flexible Credit Line arrangement for Morocco when the IMF Executive Board reconvenes in the coming weeks to take a decision.

The IMF stands ready to continue to help Morocco address the risks arising from a highly uncertain global environment.

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