Latest news with #ResilienceandSustainability
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.
Egypt Independent
12-02-2025
- Business
- Egypt Independent
IMF to provide Egypt with US$1.3 billion in new funds
The Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva announced on Tuesday that the IMF's Executive Board is expected to approve the disbursement of additional funding worth US$1.3 billion within the Resilience and Sustainability program to Egypt. She expressed her confidence in obtaining approval, showcasing the IMF's commitment towards supporting the Egyptian economy. 'We are very comfortable with the reform package in Egypt,' she added, expressing her positive vision towards the country's economic situation. Georgieva's statements came during a television interview on the sidelines of the Ninth Arab Public Finance Forum in Dubai. 'The amendments that were made came to reflect the difficult circumstances facing the country, but the basic objectives have not changed,' she explained. 'We, as management, are coming with a proposal in order to obtain a large share of the Resilience and Sustainability Program for Egypt. Our Board of Directors must give us the stamp of approval, and I am completely confident of that.' Decline in Suez Canal's revenues Regarding the decline in Suez Canal revenues, Georgieva explained that this was the result of factors beyond Egypt's control, which prompted the Fund to re-evaluate the reform path. 'We have re-evaluated the reform path to some extent. The goal remains the same, but how to achieve it is consistent with current circumstances,' she said. 'Egypt did not request a change in the reform objectives. What they requested was to make the implementation path consistent with changes in financial conditions. This confirms that it is still committed to its reform agenda, but it is working to adjust fiscal and monetary policies to ensure achieving the desired results without negatively affecting social and economic stability,' Georgieva added. IMF to discuss fourth review The spokesperson for the IMF Julie Kozack said on Friday that the IMF's Executive Board is expected to discuss the fourth review of Egypt's program in the coming weeks, noting that the meeting in the US capital, Washington, will be determined soon. The Head of the Planning and Budget Committee in the House of Representatives and former IMF expert Fakhry al-Fiqi said that Egypt is eligible to obtain the 'exceptional' financing for resilience and sustainability, which is directed to member states suffering from foreign exchange scarcity crises and is used to finance environmental and climate projects. Fiqi said that the new financing has several advantages, including the easy interest and the long repayment period during the grace period. He added that applying for it was expected for some time by the government. Edited translation from Al-Masry Al-Youm
