{
  "title": "Morocco: Request for an Arrangement Under the Precautionary and Liquidity Line and Cancellation of the Current Arrangement",
  "publication": "IMF Staff Country Reports, August 5, 2014",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2016/12/31/morocco-request-for-an-arrangement-under-the-precautionary-and-liquidity-line-and-41818",
  "canonical": "https://www.imf.org/en/publications/cr/issues/2016/12/31/morocco-request-for-an-arrangement-under-the-precautionary-and-liquidity-line-and-41818",
  "overlayPath": "/en/publications/cr/issues/2016/12/31/morocco-request-for-an-arrangement-under-the-precautionary-and-liquidity-line-and-41818/index.md",
  "summary": "EXECUTIVE SUMMARY Morocco’s economic track record was challenged in recent years by a series of exogenous shocks, to which the authorities responded vigorously.",
  "publishDate": "2014-08-05",
  "series": "IMF Staff Country Reports",
  "sections": [
    {
      "heading": "Executive summary and program status",
      "content": "- Morocco faced a series of exogenous shocks in recent years; the authorities responded with a policy program supported by the Fund’s Precautionary and Liquidity Line (PLL).\n- The program remained broadly on track and the authorities did not draw on the PLL.\n- The authorities are requesting a two-year successor PLL arrangement with a lower access of 550 percent of quota than the first arrangement.\n- The current PLL provided insurance against external risks, anchored the authorities’ reform agenda, and sent positive signals to markets.\n- The authorities intend to treat the successor arrangement as precautionary."
    },
    {
      "heading": "Near-term outlook and risks",
      "content": "- Growth will slow in 2014, but is expected to accelerate over the medium term owing to structural reforms and improved global conditions.\n- Major external downside risks highlighted:\n  - A protracted period of slower growth in Europe.\n  - A surge in global financial market volatility linked to the exit from unconventional monetary policies in large advanced economies.\n  - Higher oil prices resulting from geopolitical tensions.\n- These external risks could significantly degrade the balance of payments."
    },
    {
      "heading": "Rationale for the successor PLL and access reduction",
      "content": "- The successor PLL would continue to support the authorities’ policies given significant global risks.\n- The lower access (550 percent of quota) reflects:\n  - Strengthening of the economy in the past two years.\n  - A balance of risks lower than two years ago."
    },
    {
      "heading": "IMF staff assessment and Fund implications",
      "content": "- Staff considers that Morocco continues to qualify for a PLL arrangement and recommends approval of the authorities’ request.\n- The proposed arrangement carries low risks to the Fund.\n- Were the authorities to draw on the full amount available, the arrangement would have minimal impact on the Fund’s liquidity.\n- The authorities’ policy package provides reasonable prospects of exit at the end of this arrangement if external circumstances warrant."
    },
    {
      "heading": "Subjects and keywords (as presented)",
      "content": "- Subjects: Balance of payments, Current account deficits, External debt, Government debt management, Oil prices, Prices, Public debt, Public financial management (PFM)\n- Keywords: authorities' effort, cost recovery, CR, Current account deficits, Europe, Global, government, Government debt management, IMF Deputy managing director, ISCR, member of the IMF, Middle East, Morocco, Oil prices, short-term debt, Sub-Saharan Africa, subsidy reform, successor PLL arrangement\n\nIMF Staff Country Report No. 2014/241\n\n---\n\n Content in this bundle\n\n- Cr14241 (PDF){rel=\"external\" type=\"application/pdf\"}\n- Cr14241f (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/cr/issues/2016/12/31/morocco-request-for-an-arrangement-under-the-precautionary-and-liquidity-line-and-41818"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/cr/issues/2016/12/31/morocco-request-for-an-arrangement-under-the-precautionary-and-liquidity-line-and-41818/index.md)",
    "[Structured JSON version](/en/publications/cr/issues/2016/12/31/morocco-request-for-an-arrangement-under-the-precautionary-and-liquidity-line-and-41818/index.json)",
    "[Bundle manifest](/en/publications/cr/issues/2016/12/31/morocco-request-for-an-arrangement-under-the-precautionary-and-liquidity-line-and-41818/bundle-manifest.json)",
    "Published: August 5, 2014",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781498348140.002",
    "Morocco faced a series of exogenous shocks in recent years; the authorities responded with a policy program supported by the Fund’s Precautionary and Liquidity Line (PLL).",
    "The program remained broadly on track and the authorities did not draw on the PLL.",
    "The authorities are requesting a two-year successor PLL arrangement with a lower access of 550 percent of quota than the first arrangement.",
    "The current PLL provided insurance against external risks, anchored the authorities’ reform agenda, and sent positive signals to markets.",
    "The authorities intend to treat the successor arrangement as precautionary.",
    "Growth will slow in 2014, but is expected to accelerate over the medium term owing to structural reforms and improved global conditions.",
    "Major external downside risks highlighted:",
    "These external risks could significantly degrade the balance of payments.",
    "The successor PLL would continue to support the authorities’ policies given significant global risks.",
    "The lower access (550 percent of quota) reflects:",
    "Staff considers that Morocco continues to qualify for a PLL arrangement and recommends approval of the authorities’ request.",
    "The proposed arrangement carries low risks to the Fund.",
    "Were the authorities to draw on the full amount available, the arrangement would have minimal impact on the Fund’s liquidity.",
    "The authorities’ policy package provides reasonable prospects of exit at the end of this arrangement if external circumstances warrant.",
    "Subjects: Balance of payments, Current account deficits, External debt, Government debt management, Oil prices, Prices, Public debt, Public financial management (PFM)",
    "Keywords: authorities' effort, cost recovery, CR, Current account deficits, Europe, Global, government, Government debt management, IMF Deputy managing director, ISCR, member of the IMF, Middle East, Morocco, Oil prices, short-term debt, Sub-Saharan Africa, subsidy reform, successor PLL arrangement",
    "[Cr14241 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr14241.pdf){rel=\"external\" type=\"application/pdf\"}",
    "[Cr14241f (PDF)](/-/media/websites/imf/imported-publications/external/french/pubs/ft/scr/2014/_cr14241f.pdf){rel=\"external\" type=\"application/pdf\"}"
  ],
  "related": [
    {
      "title": "Cr14241",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr14241.pdf",
      "binary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr14241.pdf",
        "mime": "application/pdf"
      }
    },
    {
      "title": "Cr14241f",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-publications/external/french/pubs/ft/scr/2014/_cr14241f.pdf",
      "binary": {
        "path": "/-/media/websites/imf/imported-publications/external/french/pubs/ft/scr/2014/_cr14241f.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/cr/issues/2016/12/31/morocco-request-for-an-arrangement-under-the-precautionary-and-liquidity-line-and-41818/index.md",
    "json": "/en/publications/cr/issues/2016/12/31/morocco-request-for-an-arrangement-under-the-precautionary-and-liquidity-line-and-41818/index.json",
    "bundleManifest": "/en/publications/cr/issues/2016/12/31/morocco-request-for-an-arrangement-under-the-precautionary-and-liquidity-line-and-41818/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-27T17:32:14.184Z"
}