World Bank Approves $275 Million Loan to Morocco for Disaster Risk Management

Morocco will now be able to better manage the financial impact of natural disasters and climate shocks thanks to this loan. It will also be able to upgrade the institutional framework governing disaster management, according to a World Bank press release.

According to Jesko Hentschel, World Bank Country Director for the Maghreb, this new financing with a deferred drawdown option is part of the continuity of a previous project financed by the World Bank. It also aims to help Morocco develop a comprehensive framework for disaster risk management, it is indicated.

In the event of a natural disaster, the government will be able to immediately access liquidity, thanks to an additional crucial resource provided by the World Bank to Morocco’s risk management policies. Furthermore, the program aims to modernize the national institutional framework for disaster risk management. It also intends to strengthen the civil protection system by creating an information system for flood risk management, it is specified.

According to the terms of the loan conditions, the credit line can be disbursed at any time within a period of three years, which can be renewed four times to cover a total period of 15 years. An initial commission equal to 0.5% of the loan amount will be paid upon signing the financing agreement, to which will be added the payment of a renewal commission of 0.25% for each possible extension, writes the World Bank.