Morocco meets criteria of USD6.2b loan: IMF

05 Feb 2013

(MENAFN) The International Monetary Fund’s (IMF) deputy managing director, Nemat Shafik, stated that Morocco has met all the criteria that entitle it to receive a USD6.2 billion loan, reported Arabian Business.

Shafik said that the fund had finished the first evaluation of the North African country’s economic program under a 2-year precautionary credit line, noting that the economic strategy was set up properly on fiscal consolidation, structural reforms and prudent monetary and financial policies.

However, the government must reform subsidy and pension systems, as subsidies on food and energy grew to USD6.25 billion last year from USD5.78 billion in 2011.

In January, an official stated that the government might begin restructuring its expensive subsidies system for food and energy in June, in case a political decision was made to do so.

It is worth noting that the Moroccan government plans to fix its finances through cutting subsidies and reallocating spending more toward the poor.

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