The International Monetary Fund’s (IMF) Executive Board agreed on Thursday to approve an 18-month arrangement for Morocco under the Resilience and Sustainability Facility (RSF) in the amount of about $1.32 billion, or 112 percent of quota.
The RSF agreement will assist Morocco in addressing climate vulnerabilities, strengthening its resilience to climate change, and capitalizing on decarbonization potential.
The loan will also assist Moroccan authorities in strengthening their readiness for natural disasters and stimulating financing for long-term development.
The Deputy Managing Director and Acting Chair of the Board, Kenji Okamura, characterized the decision as an opportunity for Morocco. “Climate change represents a major risk to Morocco’s development but also offers opportunities. Drought and water scarcity have become a major source of macroeconomic volatility, with particularly adverse impacts on agriculture, while the fallout from the recent earthquake points to the potential implications of natural disasters, including from climate change.”
At the same time, thanks to its particularly generous endowment in renewable resources, Morocco is well-placed to reap the benefits of the global decarbonization agenda. Deploying this potential represents an opportunity for Morocco to put economic growth on a stronger and more resilient path, she said.
The arrangement would correspond with the remaining 18 months of the flexible credit line loan approved last April.