IMF approves $4.5 billion credit line for Morocco

The International Monetary Fund (IMF) has approved a new two-year $4.5 billion flexible credit line (FCL) for Morocco, aimed at strengthening the country's economy against global risks and supporting structural reforms. This decision follows the cancellation of a previous FCL arrangement from April 2023, and reflects Morocco's strong institutional policy frameworks despite facing challenges such as droughts and high unemployment. The IMF highlighted Morocco's resilience amidst various shocks, including the pandemic and geopolitical tensions, while projecting a medium-term growth rate of 3.6%. The new arrangement will provide insurance against potential economic downturns and is intended to be treated as precautionary by Moroccan authorities. Additionally, recent rainfall has positively impacted the agricultural sector, which is crucial for the economy. The arrangement underscores Morocco's commitment to maintaining sound economic policies moving forward.