IMF Executive Board First Review Under the Precautionary and Liquidity Line Arrangement for Morocco
The IMF Executive Board completed the first review of Morocco’s performance under an economic program supported by a two-year Precautionary Liquidity Line (PLL) arrangement and it reaffirmed Morocco’s continued qualification to access PLL resources.
Source : https://www.marocafrik.com/english/IMF-Executive-B...
The PLL was approved on August 3, 2012 in an amount equivalent to SDR 4,117.4 million (about US$6.3 billion, 700 percent of quotaThe access under the arrangement in the first year is equivalent to SDR 2.4 billion (about US$3.6 billion, or 400 percent of quota), rising in the second year to cumulatively SDR 4.1 billion (about US$6.3 billion).
The PLL arrangement will continue to support the Moroccan authorities’ reform agenda aimed at achieving higher and more inclusive economic growth by providing a useful insurance against external shocks. The authorities’ fiscal strategy, including the 2013 budget, is in line with their commitment to maintain fiscal sustainability and support external adjustment. As part of this strategy, it will be important to move ahead with the reforms of the general subsidy system and the pension system and to better target social protection. Fiscal space needs to be preserved to support higher and more inclusive growth.
Efforts to strengthen competitiveness and better equip the economy to respond to external shocks are a priority. The planned fiscal consolidation and structural reforms, such as those to improve the business climate and professional training, will help underpin external sustainability. The IMF encourages Morocco to move toward greater exchange rate flexibility to enhance external competitiveness and the economy’s ability to absorb shocks, in coordination with other macroeconomic and structural policies.
Commending Morocco's overall sound macroeconomic policies which helped deliver solid growth, low inflation, and poverty reduction, despite continued high youth unemployment Ms. Nemat Shafik, Deputy Managing Director and Acting Chair, said that this sound economic record was being challenged by a worsening of the external environment and a below-average harvest, even though the nonagricultural GDP growth remained robust and inflation low. The IMF added that sustained implementation ofthe government's fiscal policy ,structural reforms and monetary policy was the key to stronger and more inclusive growth.The authorities have agreed to continue to preserve the PLL arrangement as a precautionary insurance and a support for the government's economic policy.
The Moroccan government's commitment in its 2013 budget,to maintain fiscal sustainability and support external adjustment is noted by the IMF and it emphasises that it will be important to move ahead with the reforms of the general subsidy system and the pension system and to better target social protection. Fiscal space needs to be preserved to support higher and more inclusive growth.
It recommends measures to strengthen competitiveness and better equip the economy to respond to external shocks as a priority.. It says that efforts to improve the business climate and professional training, will help underpin external sustainability. Morocco is encouraged to move toward greater exchange rate flexibility to enhance external competitiveness and the economy’s ability to absorb shocks, in coordination with other macroeconomic and structural policies.It concludes that boosting employment, in particular of the young, reducing income inequalities, and increasing access to health care and education are essential.
The PLL arrangement will continue to support the Moroccan authorities’ reform agenda aimed at achieving higher and more inclusive economic growth by providing a useful insurance against external shocks. The authorities’ fiscal strategy, including the 2013 budget, is in line with their commitment to maintain fiscal sustainability and support external adjustment. As part of this strategy, it will be important to move ahead with the reforms of the general subsidy system and the pension system and to better target social protection. Fiscal space needs to be preserved to support higher and more inclusive growth.
Efforts to strengthen competitiveness and better equip the economy to respond to external shocks are a priority. The planned fiscal consolidation and structural reforms, such as those to improve the business climate and professional training, will help underpin external sustainability. The IMF encourages Morocco to move toward greater exchange rate flexibility to enhance external competitiveness and the economy’s ability to absorb shocks, in coordination with other macroeconomic and structural policies.
Commending Morocco's overall sound macroeconomic policies which helped deliver solid growth, low inflation, and poverty reduction, despite continued high youth unemployment Ms. Nemat Shafik, Deputy Managing Director and Acting Chair, said that this sound economic record was being challenged by a worsening of the external environment and a below-average harvest, even though the nonagricultural GDP growth remained robust and inflation low. The IMF added that sustained implementation ofthe government's fiscal policy ,structural reforms and monetary policy was the key to stronger and more inclusive growth.The authorities have agreed to continue to preserve the PLL arrangement as a precautionary insurance and a support for the government's economic policy.
The Moroccan government's commitment in its 2013 budget,to maintain fiscal sustainability and support external adjustment is noted by the IMF and it emphasises that it will be important to move ahead with the reforms of the general subsidy system and the pension system and to better target social protection. Fiscal space needs to be preserved to support higher and more inclusive growth.
It recommends measures to strengthen competitiveness and better equip the economy to respond to external shocks as a priority.. It says that efforts to improve the business climate and professional training, will help underpin external sustainability. Morocco is encouraged to move toward greater exchange rate flexibility to enhance external competitiveness and the economy’s ability to absorb shocks, in coordination with other macroeconomic and structural policies.It concludes that boosting employment, in particular of the young, reducing income inequalities, and increasing access to health care and education are essential.
Source : https://www.marocafrik.com/english/IMF-Executive-B...