Morocco: Request for an Arrangement Under the Precautionary and Liquidity Line: Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Morocco.
IMF Staff Country Reports, August 13, 2012
Source details
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- Morocco: Request for an Arrangement Under the Precautionary and Liquidity Line: Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Morocco.
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Bibliographic details
- Published: August 13, 2012
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475506174.002
Overview
- Publication date: August 13, 2012
- Summary: Morocco’s track record of sound economic policies helped it withstand the recent economic crisis and regional social events. High oil prices have contributed to a build-up of fiscal and external pressures, but the government has taken action to address these vulnerabilities and are committed to continuing implementation of sound policies. Morocco has sound economic fundamentals and institutional policy frameworks, and performs strongly on three of the five Precautionary and Liquidity Line (PLL) qualification areas. A precautionary arrangement would support the policies by providing a financing buffer against exogenous shocks.
- Subject tags included in the source: Balance of payments, Current account deficits, Government debt management, Inflation, Oil prices, Prices, Public debt, Public financial management (PFM)
Key findings and diagnostics
- Morocco has sound economic fundamentals and institutional policy frameworks.
- The country performs strongly on three of the five Precautionary and Liquidity Line (PLL) qualification areas.
- High oil prices contributed to a build-up of fiscal pressures.
- High oil prices contributed to a build-up of external pressures.
- A precautionary arrangement would provide a financing buffer against exogenous shocks.
Risks and vulnerabilities
- Fiscal pressures driven in part by high oil prices.
- External pressures associated with high oil prices.
- Recent economic crisis and regional social events tested resilience, but Morocco’s policy track record helped it withstand these shocks.
Policy actions and intent
- The government has taken action to address fiscal and external vulnerabilities.
- The government is committed to continuing implementation of sound policies.
- A precautionary arrangement is proposed to support ongoing policies by providing a financing buffer against exogenous shocks.
PLL qualification and rationale
- Morocco meets three of the five PLL qualification areas strongly (as stated in the source).
- The precautionary arrangement is intended as insurance/support rather than immediate balance of payments financing, consistent with PLL objectives described in the source summary.
Content in this bundle
- Morocco: Request for an Arrangement Under the Precautionary and Liquidity Line
- Cr12239f