Morocco: 2018 Request for an Arrangement Under the Precautionary and Liquidity Line-Press Release; Staff Report; and Statement by the Executive Director for Morocco

IMF Staff Country Reports, January 24, 2019

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Canonical URL: Morocco: 2018 Request for an Arrangement Under the Precautionary and Liquidity Line-Press Release; Staff Report; and Statement by the Executive Director for Morocco

Following the expiration of the third Precautionary and Liquidity Line (PLL) arrangement, in July 2018, the authorities have requested a new PLL arrangement.
The authorities did not draw on the last three arrangements.
The authorities have made further progress in reducing domestic vulnerabilities in recent years, despite a sharp pick up in oil prices.
In an external environment that remains subject to important downside risks, a successor arrangement will support the authorities’ policies to strengthen the economy’s resilience and promote higher and more inclusive growth.

Purpose of successor arrangement:
- Support authorities’ policies to strengthen the economy’s resilience.
- Promote higher and more inclusive growth.
Contextual risks:
- External environment remains subject to important downside risks.
- Recent sharp pick up in oil prices noted as a domestic stressor mitigated by progress on vulnerabilities.

No drawings on the three prior PLL arrangements.
Continued policy progress on reducing domestic vulnerabilities.
Need for precautionary support in light of external downside risks to maintain resilience and inclusive growth.

Subjects: Balance of payments, Current account, External debt, External position, Oil prices, Prices, Public debt
Keywords: administration reform, authority, CR, current account, Current account, Global, health insurance program, IMF arrangement, IMF Deputy managing director, IMF's transparency policy, ISCR, Maghreb, Middle East, Oil prices, PLL, PLL eligibility, reform effort, SDR, successor Precautionary and Liquidity Line