IMF Staff Country Reports

This paper presents Morocco’s Request for an Arrangement under the Flexible Credit Line (FCL) and Cancellation of the Current Arrangement. The Moroccan economy has shown sustained track record of implementing very strong policies and remarkable resilience to recent shocks, although a succession of droughts has severely curtailed agricultural production and pushed unemployment to historical highs. Morocco qualifies for the FCL by virtue of its very strong institutional policy frameworks and economic fundamentals, its track record of implementing very strong policies, and its continued commitment to maintaining such policies in the future. In a highly uncertain environment, the arrangement will enhance Morocco’s external buffers and provide insurance against downside risks. The authorities intend to treat the new arrangement as precautionary. The authorities are committed to treating the new FCL arrangement as precautionary and gradually reducing access, in the context of their exit strategy, contingent on the evolution of risks.