Morocco will have to secure an IMF credit line to manage Covid aftershocks, Finance body says

To manage the after aftershocks of the health crisis, Morocco has to renew a credit line with the International Monetary Fund (IMF), the head of the parliamentary finance committee told Bloomberg.

Abdellah Bouanou said that the government and Finance ministry are «well aware of the need to renew» the agreement with IMF, insinuating that the parliament is likely to support the move.

«A deal could help address the aftershocks of the pandemic, especially when there is no telling which direction the global economy will take over the next two years», Bouanou said, adding : «We will have to renew the facility».

In April, IMF granted Morocco a $3 billion loan to manage the impact of Covid-19, using its first precautionary facility since 2012.

Morocco’s economy is expected to contract by 7% in 2020 according to IMF because of the health crisis that hit vital sectors for the country, including exports and tourism.