IMF and Bank Al-Maghrib to extend a loan agreement for low-income countries

Bank Al-Maghrib and the International Monetary Fund agreed on extending a loan agreement, namely the Poverty Reduction and Growth Trust (PRGT), to 2022. The agreement aims at raising concessional lending granted to low-income countries.

The IMF, as the manager of the PRGT, introduced an amendment to its investment agreement with Bank Al-Maghrib in 2012, under which Morocco pledged a subsidy contribution of 1.1 million special drawing rights (SDRs) to the PRGT, the Moroccan central bank said in a statement.

In order to achieve this objective, the investment agreement with Morocco has been extended by five years, says the same source.

The amendment launched on the 13th of October, 2017, is the first investment agreement under the GTIP, taking into account the new investment strategy for the assets of this fund approved by the IMF's Board of Directors last March.

For the record, Morocco's contribution to the GTIP plays an important role in ensuring the medium-term sustainability of IMF concessional lending to low-income member states.