Relations between Morocco and international financial institutions are no longer confined to the language of trust and praise expressed in statements exchanged between the two sides. Rather, they have reached the speed of actual deterioration after the Executive Board of the Bretton Woods Foundation welcomed, in a communiqué issued on May 1, the resilience of the Moroccan economy in the face of shocks. . Macroeconomic policies and institutional frameworks were praised. The Council also approved the first review of the “flexible credit line” and the “rigidity and sustainability” arrangement.
Morocco’s withdrawal of financing from the International Monetary Fund worth 3.3 billion dirhams, last March, comes as a first installment of a total loan of 13 billion dirhams ($1.3 billion) signed within the “Resilience and Sustainability Facility” program (known as “RSF”).
This type of lending, i.e. the “resilience and sustainability facility,” provides, according to IMF data, “long-term financing at a reasonable cost in order to support countries undertaking reforms to reduce the risks surrounding the potential stability of their balance of payments, including risks associated with climate change, as well as preparedness.” “For pandemics.”
According to the data available to Hespress, “obtaining the first installment of this loan came after meeting with experts from the International Monetary Fund, who visited Morocco last February, which made them understand Morocco’s commitment to several measures that seek to enhance the resilience of the economy to face the repercussions of climate change, whether related to “The matter is to encourage renewable energies or confront water scarcity.”
The loan to the Kingdom was approved in September of last year, and extends for 18 months, with the stated aim of “supporting the transition to a more environmentally friendly economy, and helping to enhance preparedness and resilience in the face of natural disasters, including disasters resulting from climate change.”
In response to the question “The capabilities and options of the Moroccan government authorities concerned with the measures of this new financial line of facilities,” Hassan Al-Arfi, Professor of Public Finance at the Faculty of Law Agdal – Mohammed V University in Rabat, stated that “This loan falls within the framework of the debt formula of a flexible and sustainable nature within Formulas for the International Monetary Fund.
Al-Arfi confirmed, in a statement to the electronic newspaper Hespress, that this formula “falls within the framework of opening a credit line worth five billion dollars to countries located in the Middle East and North Africa last April, according to an approach adopted by the Fund that allows these countries to quickly access the Fund’s resources, without conditions.” suffix.”
“As for Morocco, this financial line has been approved by the Fund’s Board of Directors, which is equivalent to one billion units of Special Drawing Rights (the International Monetary Fund’s unit of account corresponding to a basket of the five major currencies),” continues the public finance professor.
According to the same financial expert, this loan also aims primarily to “enable Morocco to confront some climate problems, support its resilience in the face of climate change, and the ability to seize opportunities to remove carbon from its economy.”
The academic specializing in public finance added that the loan “will also help the Moroccan authorities enhance their capabilities to prepare for natural disasters and stimulate financing for sustainable development,” as he put it.
The same expert did not fail to point out that Morocco has another agreement with the International Monetary Fund called the “flexible credit line,” worth $5 billion and extending until April 2025. The Moroccan authorities decided to make this large financing an insurance and hedge against potential risks it may face in the future. “In general, this line is directed to what was agreed upon, and not to finance the state treasury in general,” explains Hassan Al-Arfi.
For his part, Fawzi Morji, professor of economics at Hassan II University in Casablanca, commented on the issue, in a brief statement to Hespress, saying: “In fact, I do not have comprehensive ideas about the possible scenarios for using these borrowed financial volumes within the framework of the resilience and sustainability facilities package.”
Morji, who also directs the “Laboratory of Applied Statistics for Analysis and Research in Economics,” explained that “these facilities can be accommodated within the dynamics of debt and public indebtedness.”
The same Moroccan economist made comments in general about the outcome of using this batch of international financing facilities, saying: “In general, if debt is used for investment, it will generate wealth that not only justifies it, but also allows it to be repaid, because investments will lead to growth and wealth creation.”
He added: “But if the use is for consumption, it becomes more sensitive. “It is postponing debts for future generations that will have to pay… as if it contributes to reducing their savings.”
It is expected that the “other payments” of the “$1.3 billion” loan will be disbursed at the end of this year and the beginning of next year, with the progress of the Fund’s experts’ work with the Moroccan authorities, especially the Ministry of Economy and Finance, in implementing the required procedures included within the work program agreed upon between the two parties.
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2024-05-07 16:31:07
