IMF Approves $3 Billion Loan to Morocco for COVID-19 Response

This loan, obtained and repayable over 5 years, with a grace period of 3 years, is part of the fight against the pandemic of the new coronavirus (covid-19).

"The entire amount of this loan will be made available to Bank Al-Maghrib and will be used mainly to finance the balance of payments," it is explained. Moreover, this amount is not allocated to impact public debt. It will not be used to finance the budget deficit either, but will be recorded on Bank Al-Maghrib’s balance sheet.

With foreign exchange reserves of nearly $25 billion, covering 5 months and 8 days of imports, the external payments situation is not worrying, for the moment. By resorting to the PLL, the kingdom is already anticipating the possible shocks that could be caused by the expected declines in export earnings, tourism and remittances from Moroccans living abroad.

"Resorting to the PLL will help mitigate the impact of this crisis on the economy." This unprecedented decision by the kingdom also aims to "maintain foreign exchange reserves at an adequate level to strengthen the confidence of foreign investors and partners in the Moroccan economy".