Latest news with #KenjiOkamura
Reuters
3 days ago
- Business
- Reuters
IMF approves $1.5 billion, 2-year flexible line of credit for Costa Rica
WASHINGTON, June 2 (Reuters) - The International Monetary Fund on Monday said it had approved a $1.5 billion, two-year precautionary flexible line of credit for Costa Rica, saying it would enhance Costa Rica's external buffers against potential risks. In a statement, the IMF said its Flexible Credit Line arrangements were reserved for countries with very strong policy frameworks and track records in economic performance. "The arrangement is intended to send a very clear signal of the quality of the country's very strong policies and institutional frameworks," it said. The IMF said Costa Rican authorities planned to treat the arrangement as precautionary, for use if future external shocks materialized, and could request reduced access in the future if external risks were to decline. IMF Deputy Managing Director Kenji Okamura said Costa Rica had an impressive reform track record which had spurred economic growth, reduced public debt, and lowered poverty. But the country was vulnerable to increased external risks, including a prolonged increase in global uncertainty, slower growth in major trading partners, tighter global financial conditions, and higher oil prices. The IMF last month said Costa Rica's growth was expected to ease to around 3.5% in 2025 and inflation was expected to return to the central bank's target of 3%.
Morocco World
03-04-2025
- Business
- Morocco World
Crisis Prevention: IMF Approves 2-Year $4.5 Billion Credit Line Arrangement for Morocco
Rabat – The International Monetary Fund (IMF) approved on Wednesday a two-year $4.5 billion arrangement for Morocco designed for crisis prevention. The arrangement is under the Flexible Credit Line (FCL), the statement said on Wednesday, noting that Morocco has canceled the previous FCL arrangement. 'The Moroccan authorities stated their intention to treat the new arrangement as precautionary,' the IMF said, noting that this constitutes the second FCL with lower access in line with the authorities' goal of contributing to reducing access as risks permit in the context of their gradual exit strategy. Kenji Okamura, Deputy Managing Director and Acting Chair of the IMF, spoke of the new approved credit line, applauding the Moroccan economy's resilience to different shocks, particularly drought that affected agricultural production. 'Morocco's very strong institutional and policy frameworks have been effective in addressing these shocks, with well-calibrated fiscal, monetary, and financial policies,' Okamura said, stressing that Morocco's government is committed to continuing to implement its ambitious structural reform agenda towards a more resilient and private sector-led growth. Commenting on the new FCL arrangement, Okamura said the arrangement will continue to provide Morocco insurance against downside risks, acknowledging that the economy remains vulnerable to a worsening of global economic and financial conditions, higher commodity prices, and new occurrences of droughts. 'The authorities are committed to treating the new FCL arrangement as precautionary and gradually reducing access, in the context of their strategy contingent on the evolution of risks,' Okamura concluded. In March, the IMF's executive board also approved a $496 million loan for Morocco under the Resilience and Sustainability Facility arrangement, bringing the total disbursement under this arrangement to about $1.24 billion.
Morocco World
19-03-2025
- Business
- Morocco World
Economic Resilience: IMF Approves $496 Million for Morocco
Rabat – The International Monetary Fund's (IMF) executive board announced that it has approved the disbursement of the third tranche in favor of Morocco under the Resilience and Sustainability Facility arrangement, amounting to $496 million. This brings the total disbursement under the arrangement to about $1.24 billion, a statement from the IMF said, noting that Morocco's economy continued to show resilience despite another year of drought. The monetary fund also suggested that the country's economic growth is expected to accelerate over the medium term, as a result of stronger investments and structural reforms. 'Robust domestic demand helped offset weak agricultural output and economic activity is expected to have slowed only modestly to 3.2 percent in 2024,' IMF stated, noting that the current account deficit has widened. IMF also recalled some of the challenges Morocco has been facing, including unemployment, which remains elevated at about a 13% rate, affecting the agricultural sector. Despite a modest slowdown in Morocco's GDP growth, IMF expects the pace to accelerate to 3.7% over the next few years thanks to infrastructure projects as well as the structural reform agenda. A majority of these infrastructure projects center around Morocco's vast preparation campaign for the 2030 World Cup. The projects include the construction of new stadiums and the renovation of existing ones, as well as robust additions to roadway and railway infrastructure. Kenji Okamura, Deputy Managing Director and Acting Chair of the IMF had high remarks for Morocco's economy, commenting that it has continued to show resilience to negative shocks, a case that reflects the country's 'very strong economic policies and frameworks.' 'Despite renewed drought conditions, economic activity slowed only modestly to an estimated 3.2 percent in 2024, down from 3.4 percent in 2023, thanks to robust domestic demand,' Okamura added. The IMF executive further commented on Morocco's reforms, noting that they are essential to making growth stronger, more resilient, job-rich, and more inclusive. The bank also recalled Morocco's climate efforts under the resilience arrangements, noting that a series of measures have been implemented to better protect underground water resources and improve regulations for the electricity market to encourage the private sector's production of renewable energy. Tags: Africa's economyMorocco economic
Ya Biladi
19-03-2025
- Business
- Ya Biladi
IMF allocates $496 million to boost Morocco's economy
The International Monetary Fund (IMF) approved a $496 million disbursement to Morocco on Tuesday, following the completion of the third and final review of its Resilience and Sustainability Facility (RSF) program. This brings the total funding under the program to $1.24 billion. According to IMF Deputy Managing Director Kenji Okamura, Morocco's economy has demonstrated resilience in the face of economic shocks, supported by strong policies. Despite another year of drought, growth is expected to slow only slightly, reaching 3.2% in 2024 before accelerating to 3.7% in the coming years, driven by structural reforms and infrastructure projects. However, unemployment remains high at around 13%, primarily due to job losses in the agricultural sector. Meanwhile, easing inflation has enabled Bank Al-Maghrib to lower its key interest rate to 2.25%, marking its second consecutive cut. Approved in September 2023, the RSF program aims to support Morocco's ecological transition and enhance its resilience to natural disasters, particularly in the wake of the devastating earthquake that struck the country in September 2023. The IMF has praised Morocco's progress in tax reform, integrating climate risk into its budget framework, and strengthening the Mohammed VI Investment Fund, which improves financing access for SMEs. Of the seven planned reforms under the program, six have already been implemented, including water management, electricity sector liberalization, and assessing climate risks to financial stability. However, the introduction of a carbon tax has been postponed to allow for a more comprehensive analysis of its impact.
The National
18-03-2025
- Business
- The National
IMF unlocks $496m in funding for Morocco
The International Monetary Fund's executive board on Tuesday unlocked $496 million in funding for Morocco. The Moroccan economy continued to show resilience in response to negative shocks, in a testament to the country's strong economic policies and frameworks, Kenji Okamura, IMF deputy managing director and acting chairman, said in a statement. The disbursement was approved after the fund's leadership approved the third review of its Resilience and Sustainability (RSF) arrangement with Morocco. The third review's completion brings total disbursement under the arrangement to about $1.24 billion. The IMF approved Morocco's 18-month RSF arrangement in September 2023 to support the country's transition to a green economy and strengthen its resilience against natural disasters. It came shortly after a 6.8-magnitude earthquake struck the country, killing almost 3,000 people. It was Morocco's deadliest earthquake in more than six decades. The earthquake struck about one month before the 2023 IMF and World Bank Annual Meetings in Marrakech. The IMF's executive board said Morocco's economy, growth of which was expected to slow 'only modestly' to 3.2 per cent in 2024, was resilient despite another year of drought. The country's gross domestic product is projected to increase to about 3.7 per cent in the next few years, which will be helped by its structural reform agenda and new infrastructure projects. 'These reforms are essential to making growth stronger, more resilient, job-rich, and more inclusive,' Mr Okamura said. However, the Washington-based lender noted that unemployment remains high at about 13 per cent, mostly due to losses in the agricultural sector. Inflation has fallen in the North African country, which has allowed its central bank to issue a handful of interest rate cuts. Morocco's central bank lowered rates for a second consecutive time on Wednesday to 2.25 per cent, down from 2.5 per cent. The central bank expects inflation to fall about 2 per cent over the next two years. IMF staff conducted a mission to Rabat last month. At the time they said structural reforms should focus on strengthening job growth and that strong domestic demand was boosting economic growth. They welcomed reforms to Morocco's tax system, and in including an assessment of climate change risk to Rabat's medium-term fiscal framework. They also saw progress in the Mohammed VI Investment Fund, which the IMF said should help small and medium-sized enterprises receive equity financing. The third review was the final one of Morocco's RSF programme. Six of the seven measures scheduled for review were implemented. 'These measures will help improve the management of scarce water resources, further liberalise the electricity sector, and address the climate risks on the stability of the fiscal position and the financial system,' Mr Okamura said. The IMF said gradually introducing a carbon tax was not implemented because Moroccan authorities needed to conduct a further analysis on its impact.
