Morocco Seeks IMF Flexible Credit Line to Boost International Market Position

Morocco’s objective in negotiating this Flexible Credit Line with the International Monetary Fund (IMF) is to benefit from better conditions internationally when it returns to the market in 2021, reports Aujourd’hui Le Maroc.

In its approach to obtaining this financial instrument, Morocco intends to move faster and take advantage of more flexibility from the IMF. For Abdellatif Jouahri, Governor of Bank Al-Maghrib (BAM), the Kingdom has sufficient reserves to manage the current crisis and the post-pandemic period. "If you want to renegotiate the PLL, you have to meet the eligibility criteria, which are five in number, two of which require a certain flexibility on the part of the IMF," he had specified.

For now, international institutions, including rating agencies, are keeping a close eye on the next step of the Flexible Credit Line with the IMF.

As for Fitch Ratings, it hopes that Morocco will negotiate another precautionary line of credit agreement after the one in April, which allowed it to have nearly $3 billion repayable over 5 years with a grace period of 3 years.