Moroccan Banks Show Resilience During Pandemic, IMF Reports

This is the conclusion of the mission of the services of the International Monetary Fund (IMF), to evaluate the economic policy and prospects of the kingdom for this year, reports l’Opinion, citing the IMF Mission Chief for Morocco, Roberto Cardarelli.

During a conference held for this purpose, the official stressed that the IMF has welcomed the decision of the Central Bank to end most of the prudential measures adopted to support the banking sector during the pandemic.

"BAM has left its key rate unchanged and has maintained liquidity support measures," said Mr. Cardarelli, noting that the IMF services are in favor of this accommodative monetary orientation, especially since inflationary pressures remain contained and inflation expectations are well anchored.

He added that "the recent appreciation of the exchange rate and the uncertainty as to the transitory or lasting nature of these inflationary pressures provide an opportunity for the authorities to accelerate the transition to an inflation targeting regime."

For the services of the international financial institution, the central bank must continue its expertise, ensuring that banks continue to build provisions for non-performing loans, while accelerating, with the relevant authorities, the launch of reforms for the creation of a secondary market for non-performing loans.