Arab Today, arab today imf approves new loan to morocco
Last Updated : GMT 18:46:53
Arab Today, arab today
Arab Today, arab today

IMF approves new loan to Morocco

Arab Today, arab today

Arab Today, arab today IMF approves new loan to Morocco

Washington - Arabstoday

The International Monetary Fund (IMF) on Friday approved loans to Morocco and Jordan after they were hit by costlier energy bills, economic restraints from regional instability and an escalating euro zone crisis. The IMF approved a $6.2 billion precautionary line of credit for Morocco over two years, which it said the government would treat as \"insurance\" in case economic conditions deteriorate and it faced sudden financing needs. The IMF board also approved a $2 billion loan to Jordan, announced last month. Jordan\'s finances were hurt by regional protests and supply disruptions from Egypt forced it to switch from gas to more expensive oil for power generation. IMF Managing Director Christine Lagarde said Morocco\'s economic policies have contributed to strong growth, low inflation and a resilient banking sector. But the country has been hard hit by a decline in trade from the euro zone. \"High oil prices have contributed to a build-up of fiscal and external pressures,\" Lagarde said. \"The authorities have already taken action to address these vulnerabilities, and are committed to maintaining sound policies.\" Lagarde said Jordan \"is facing external and fiscal challenges stemming largely from exogenous shocks to its energy sector.\" \"These shocks have put pressure on the external accounts, pushed up the deficits of the central government and the public electricity company, and exposed structural weaknesses in fiscal and energy policies.\" Jordan\'s economic growth slowed to 3 percent year-on-year in the first quarter of this year due to sluggish private sector growth. Turmoil from the Arab Spring in neighboring countries including Syria and Egypt have also cast a shadow over investment, while ramped up social spending to quell unrest has further strained public finances. In Rabat, Morocco said the IMF credit should give comfort to foreign lenders, investors and rating agencies, and allow it to tap international capital markets at favorable borrowing terms. In a statement carried by the state-run MAP news agency, the Finance Ministry said the economy \"remains vulnerable to external shocks mostly linked to a worsening recession in the euro zone and a new surge\" in commodity prices. Morocco\'s fiscal and current account deficits surged last year to their highest levels in many years and analysts are worried about Rabat\'s ability to quickly reverse the trend. While the Moroccan currency is not convertible, the rise in those deficits exacerbated a chronic shortage in liquidity in a domestic market that is the state\'s biggest creditor. After bad weather hit its agricultural sector, the North African country is now bracing for higher food import costs after drought slashed its farming output. Its foreign currency reserves barely cover four months of import needs. The rise in the budget deficit followed a series of handouts, which included public sector wage hikes and higher spending on subsidies last year aimed at containing a spillover from Arab Spring revolts. Authorities have promised to start reducing spending on subsidies, costs of which amounted to roughly the budget deficit last year, but indicated the process may take until 2016. IMF mission chief to Morocco, Dominique Guillaume, said the country\'s international reserves were still at a \"comfortable level\" and their decline was due to seasonal factors. He said tourism revenues and migrant remittances usually pick up in the second half of the year, when several bilateral loans also come due to the government. \"We really don\'t see there is a balance of payment need for Morocco at this stage,\" Guillaume added. The Washington-based IMF said Morocco had already taken steps in June to reform subsidies, which will lead to higher fuel prices. \"We are quite confident that they have a broad set of measures on both the revenue and spending side to reduce the deficit to 3 percent over the next few years and strengthen fiscal sustainability,\" Guillaume added. From:Arabsnews

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today imf approves new loan to morocco Arab Today, arab today imf approves new loan to morocco

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 21:49 2017 Thursday ,16 February

Scientists develop new therapy

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday