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Morocco seeks $ 400 million World Bank loan

Faced with the harmful effects of the health crisis linked to the coronavirus, Morocco is requesting a “retroactive loan” of $ 400 million from the World Bank.

This loan request is in line with the World Bank’s program to support developing countries to cope with the economic and social repercussions of the Covid-19 crisis. “This World Bank program finances various health, social and economic expenses. It is not the World Bank that chooses which programs to finance, but the institution aligns itself with programs launched by states and supports these programs”.

Morocco has chosen to highlight cash transfer operations carried out to help vulnerable populations, in particular Operation Tadamon targeting informal populations. The kingdom will also partially finance the expenses already incurred in cash transfer operations, carried out between April and July, in favor of part of the population. Likewise, the loan takes into account the financing of the Tayssir program and assistance in the project to extend social protection.

This is a very special operation that Morocco is setting up with the World Bank. Because it is a retroactive loan that will finance expenses already incurred by the government. (…) The project is still under negotiation. Discussions with the World Bank will end next week. That’s when we’ll know if the project will be successful or not. Because the World Bank can approve the project, but Morocco can decide not to use this financing mechanism. Everything will depend on the conditions that will be required by the World Bank.

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