The International Monetary Fund (IMF) said on September 11 that it had reached a tentative agreement with Morocco to provide a $1.3 billion loan to bolster the country’s resilience to climate-related disasters from the Fund’s new Resilience and Sustainability Trust, reported Reuters.
IMF Managing Director Kristalina Georgieva said in an interview that the IMF and World Bank are currently deciding whether to proceed with their annual meetings in Marrakech in October, adding that a thorough review of the country’s ability to host the meetings will be conducted before a decision is made.
Despite concerns following the devastating earthquake, Moroccan officials are urging the IMF to continue with the meetings in Marrakech. Georgieva acknowledged the commitment of the Moroccan authorities to hosting the meetings but also expressed concern about burdening the country during its recovery efforts.
Georgieva said that she discussed the potential negative impact on Morocco’s hospitality industry if the meetings were not held in Marrakech with Moroccan Head of Government Aziz Akhannouch. She added that she agreed to explore options to simplify the meetings, such as reducing their duration and attendance.
A decision on whether to proceed with the meetings is expected to be announced later, taking into consideration factors such as physical capacity and logistics.
The $1.3 billion loan for Morocco from the Resilience and Sustainability Trust will require approval from the IMF’s Executive Board, which is likely to occur before the annual meetings commence.
Although the loan is unrelated to the earthquake crisis that hit Morocco on September 8, it aims to enhance Morocco’s ability to withstand climate-change related disasters, including drought, and improve its overall financial capacity.
Reuters added that Morocco currently has access to a $5 billion flexible credit line from the IMF, approved in April, to strengthen its crisis prevention capabilities.
The IMF extended its condolences to Morocco following the devastating earthquake that struck many regions in Morocco. “In this time of grief and need, we stand with the Moroccan people and the Kingdom’s authorities, who are dealing with this tragedy. We have been in contact with the authorities and conveyed these sentiments of sorrow and support on behalf of IMF staff, management and the Executive Board.”