## Morocco: Request for an Arrangement Under the Flexible Credit Line-Press Release; Staff Report; and Statement by the Executive Director for Morocco

_IMF Staff Country Reports, April 24, 2023_

## Source details

**Canonical URL:** [Morocco: Request for an Arrangement Under the Flexible Credit Line-Press Release; Staff Report; and Statement by the Executive Director for Morocco](https://www.imf.org/en/publications/cr/issues/2023/04/24/morocco-request-for-an-arrangement-under-the-flexible-credit-line-press-release-staff-532683)

## Other formats

- [Markdown version](/en/publications/cr/issues/2023/04/24/morocco-request-for-an-arrangement-under-the-flexible-credit-line-press-release-staff-532683/index.md)
- [Structured JSON version](/en/publications/cr/issues/2023/04/24/morocco-request-for-an-arrangement-under-the-flexible-credit-line-press-release-staff-532683/index.json)
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## Bibliographic details
- Published: April 24, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400240508.002

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### Overview
- Presents Morocco’s Request for an Arrangement under the Flexible Credit Line (FCL).
- Morocco qualifies for the FCL by virtue of its very strong policies, institutional policy frameworks, and economic fundamentals and continued commitment to maintaining such policies in the future.
- The authorities stated their intention to treat the arrangement as precautionary.
- The arrangement will enhance Morocco’s external buffers and provide insurance against plausible tail risks on a temporary basis.

### Macroeconomic assessment and resilience
- Morocco’s very strong macroeconomic policies and institutional framework have allowed its economy to remain resilient to multiple negative shocks over the past three years, including:
  - the pandemic,
  - two droughts,
  - the spillovers from Russia’s war in Ukraine.

### Downside risks and external environment
- Downside risks to the economic outlook remain elevated and stem primarily from:
  - the external environment,
  - the impact of climate change.
- Specific shock scenarios noted:
  - A greater-than-expected fallout from Russia’s war in Ukraine would:
    - lower external demand,
    - increase commodity price volatility,
    - tighten external financial conditions.

### Purpose and policy considerations
- The FCL arrangement is intended as a precautionary instrument to:
  - enhance external buffers,
  - provide temporary insurance against plausible tail risks.
- The qualification for the FCL rests on:
  - very strong policies,
  - institutional policy frameworks,
  - strong economic fundamentals,
  - continued commitment to maintaining such policies.

*International Monetary Fund. "Morocco: Request for an Arrangement Under the Flexible Credit Line-Press Release; Staff Report; and Statement by the Executive Director for Morocco", April 24, 2023.*

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## Content in this bundle

- **Morocco: Executive Summary and Staff Report Excerpts**
  - [Morocco: Executive Summary and Staff Report Excerpts (Markdown version)](/-/media/files/publications/cr/2023/english/1marea2023002.pdf.md){rel="alternate" type="text/markdown"}
  - [Morocco: Executive Summary and Staff Report Excerpts (PDF)](/-/media/files/publications/cr/2023/english/1marea2023002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2023/04/24/morocco-request-for-an-arrangement-under-the-flexible-credit-line-press-release-staff-532683_