Access to liquidity line arrangement - The International Monetary Fund (IMF) on Tuesday said it had completed the first review of Morocco’s performance under an economic programme supported by a two-year Precautionary Liquidity Line (PLL) arrangement, and reaffirmed Morocco’s continued qualification to access PLL resources.
IMF said in a statement that the PLL was approved on 3 August, 2012 in an amount equivalent to Special Drawing Right (SDR) 4,117.4 million (about US$6.3 billion, 700 percent of quota).
'The access under the arrangement in the first year is equivalent to SDR 2.4 billion (about US$3.6 billion, or 400 percent of quota), rising in the second year to cumulatively SDR 4.1 billion (about US$6.3 billion),’’ it said.
IMF said the PLL arrangement would continue to support the authorities’ home-grown reform agenda aimed at achieving higher and more inclusive economic growth by providing a useful
insurance against external shocks.
'The PLL was introduced to meet more flexibly the liquidity needs of member countries with sound economic fundamentals and strong record of policy implementation but with
some remaining vulnerabilities,' it said.
The statement also said the IMF’s Executive Board welcomed Morocco’s intention to continue treating the arrangement as precautionary.
It quoted Ms. Nemat Shafik, IMF Deputy Managing Director and Acting Chair of the Board, as saying that over the past decade, 'Morocco’s overall sound macroeconomic policies helped deliver solid growth, low inflation, and poverty reduction, despite continued high youth unemployment.
'This extended period of sound economic performance has been recently challenged by a worsening of the external environment and a below-average harvest, even though the non-agricultural GDP growth remained robust and inflation low.
'Against this backdrop, the authorities’ economic strategy is built appropriately on fiscal consolidation, structural reforms and prudent monetary and financial policies. Sustained implementation will be key to rebuilding buffers, preserving macroeconomic stability and
achieving stronger and more inclusive growth,’’ she stated.