Morocco Advances Subsidy Reform

The IMF has commended Morocco for the progress made in subsidy reform and the removal of subsidies on all liquid petroleum products, while expanding its support to the most vulnerable segments of society.

This assessment comes as part of a review of the country’s economic performance under a two-year Precautionary Liquidity Line (PLL) arrangement for a total of SDR3.23bn (about $5bn or 550% of Morocco’s IMF quota). With this arrangement Morocco can access about $4.5bn in the first year, rising in the second year to a cumulative $5bn.

As with an earlier 2012 PLL, the Moroccan authorities say they intend to treat this arrangement as precautionary, and have no plans to draw on it, unless the country experiences actual balance of payments needs from a deterioration of external conditions. (CONTINUED - 276 WORDS)