IMF agrees on $5bn credit line for Morocco

WASHINGTON (Reuters) – The International Monetary Fund said on Monday it will provide Morocco a $5 billion credit line to help the North African country pursue a reform agenda to achieve rapid and more inclusive economic growth.

Morocco's central bank governor said last month his country was working with the IMF on a new line of credit to replace a $6.2 billion two-year precautionary liquidity line, or PLL, that expires in August.

The IMF liquidity line is aimed at countries with relatively good economic policies that still face balance of payments needs because of issues beyond their control. So far, only Morocco has used this type of program.

The line provides reassurance about Morocco's economic policies to foreign lenders, investors and rating agencies, allowing it to tap international capital markets at favorable borrowing terms.

The IMF said that under the two-year arrangement approved under the PLL, Morocco would get access to about $4.5 billion in the first year, and the full $5 billion in the second year.

"The Moroccan authorities have stated that they intend to treat the arrangement as precautionary, as they have done with the 2012 PLL, and do not intend to draw under the arrangement unless Morocco experiences actual balance of payments needs from a significant deterioration of external conditions," the IMF said.