IMF: What Morocco has committed to with the PPL $ 6.2 billion loan
The IMF has published on its web portal the letter which it sent to the Moroccan authorities for the financial line for precaution and liquidity agreed by the international institution on August 3.
Source : https://www.marocafrik.com/english/IMF-What-Morocc...
This is a line of insurance that Morocco can use in case of need, to decide in its favor the IMF, US $6.2 billion of liquidity in foreign currencies will be available for 2 years, which will serve as a lifeline for emergencies.
It was clear from the outset that the Christine Lagarde’s praise for the Moroccan economy and its staedfastness and strong foundations, would not have been enough to convince the IMF to grant its PPL to Morocco.
The international institution required a mini rigorous Structural Adjustmant Programme 5SAP)supported by the signatures of Finance Minister Nizar Baraka and the Governor of Bank Al Maghrib (BAM) Abdelatif Jouahri.
The letter from the Finance Minister and chief banker of the Kingdom informs the IMF that Morocco is committed to maintaining foreign exchange reserves to a minimum level of comfort, including 4 months of imports during the second half of 2012, involving a drastic reduction in imports, which would greatly affect domestic consumption and retail outlets.
The budget deficit must be reduced to less than 3% of GDP in 2016, against 5% now, auguring well for substantial cuts in non-performing loans, and social compensation.
The country's financial authorities have promised to achieve a growth of 5.5% over the period 2012 to 2016, a very optimistic rate when considering the economic slump in the European Union, Morocco’s main trading partner
It was clear from the outset that the Christine Lagarde’s praise for the Moroccan economy and its staedfastness and strong foundations, would not have been enough to convince the IMF to grant its PPL to Morocco.
The international institution required a mini rigorous Structural Adjustmant Programme 5SAP)supported by the signatures of Finance Minister Nizar Baraka and the Governor of Bank Al Maghrib (BAM) Abdelatif Jouahri.
The letter from the Finance Minister and chief banker of the Kingdom informs the IMF that Morocco is committed to maintaining foreign exchange reserves to a minimum level of comfort, including 4 months of imports during the second half of 2012, involving a drastic reduction in imports, which would greatly affect domestic consumption and retail outlets.
The budget deficit must be reduced to less than 3% of GDP in 2016, against 5% now, auguring well for substantial cuts in non-performing loans, and social compensation.
The country's financial authorities have promised to achieve a growth of 5.5% over the period 2012 to 2016, a very optimistic rate when considering the economic slump in the European Union, Morocco’s main trading partner
Source : https://www.marocafrik.com/english/IMF-What-Morocc...