Advance Repayment of Part of IMF Precautionary Liquidity Line : 23/12/2020

Advance Repayment of Part of IMF Precautionary Liquidity Line

Morocco, on December 21, 2020, repaid in advance a part of the funds drawn on the Precautionary and Liquidity Line (PLL) of the International Monetary Fund (IMF), amounting to 651 million SDR (Special Drawing Rights), which equals US$ 936 million or MAD 8.4 billion. This operation will be effective as of January 8, 2021.

It is to recall that as part of its proactive response to the Covid-19 pandemic crisis, Morocco carried out on April 7, 2020 a drawing on the Precautionary and Liquidity Line for an amount equivalent to nearly US $ 3 billion, repayable over 5 years, with a 3-year grace period.

Now, and after the exceptional mobilization effort of the Treasury, with in particular two issues on the international financial market, the outstanding AOR (Official Reserve Assets) of Morocco has reached a comfortable level which allows it to cover more than seven month of its imports of goods and services, a situation which should be maintained in the medium term.

This operation will help relieve Morocco's future financial commitments while reducing the costs thanks, in particular, to the very favorable terms of the latest international Treasury issue. This operation will also strengthen the trust of investors and markets in our economy.

The operation was unanimously praised by the IMF Executive Board during its December 18 meeting dedicated to reviewing the report on the Article IV Mission with Morocco.