IMF Approves $1.3 Billion Loan to Morocco for Climate Resilience and Green Transition

Announced on Thursday, the 18-month loan is not directly related to the recent deadly earthquake that occurred a month ago. This initiative is part of the IMF’s Resilience and Sustainability Facility (RSF) and has received the approval of the Board of Directors. Equivalent to 1 billion SDRs, the IMF’s unit of account based on a basket of the five main currencies, this agreement aims to strengthen Morocco’s ability to cope with climate challenges and seize the opportunities of economic decarbonization.

According to the IMF, this financing will allow Morocco to address its climate vulnerabilities and strengthen its resilience to climate change. It will also help strengthen the country’s disaster preparedness capacities and boost sustainable development financing. This loan is part of a $5 billion credit line opened to Morocco last April, a post-conditionality-free approach offered by the IMF to allow countries to quickly access the Fund’s resources.

It should be noted that Morocco has recently been hit by a magnitude 7 earthquake in the center of the country, the most powerful ever recorded in the kingdom, causing nearly 3,000 deaths, more than 5,600 injuries and many homeless.