The administrators of the International Monetary Fund (IMF) welcomed on Wednesday the announcement that the Moroccan authorities intend to repay soon part of the precautionary and liquidity line (PLL), released last April.
“Directors noted that the decision to use the Precautionary and Liquidity Line Agreement (PLL) in April 2020 had helped ease external financial pressures and maintain official reserves at an adequate level,” a statement of the financial institution said.
For them, this repurchase “thus makes post-program monitoring unnecessary”. “The directors are delighted with the continued close engagement of the Fund with the Moroccan authorities,” they add.
Directors also welcomed the exceptional measures adopted by Bank Al-Maghreb to mitigate the impact of the pandemic on financial markets and the real economy. They “called for a strengthening of the management and reporting of the associated budgetary risks”. “While acknowledging the progress made, they welcomed the continued efforts to improve governance and modernize public sector administration and fight corruption,” the statement continued.
The latter indicates that the directors of the IMF have also “welcomed the authorities’ commitment to extend the social protection system to generalize its coverage, make access to benefits more equitable and improve the targeting and efficiency of spending.”
In its statement, the IMF recalled that on December 18, its Executive Board concluded the Article IV consultation with Morocco.
It should be recalled that last April, Morocco drew on the PLL made available to it by the IMF, for an amount of nearly $ 3 billion, repayable over a period of five years, with a period of three year grace.