Connect with us
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

IMF Executive Board Concludes the Ex-Post Evaluation of the Second Precautionary and Liquidity Line Arrangement for Morocco

On August 1, 2017, the Executive Board of the International Monetary Fund (IMF) concluded the Ex Post Evaluation (EPE) of exceptional access under the 2014–16 Precautionary and Liquidity Line (PLL) arrangement. (The Executive Board also concluded the second review of Morocco’s economic performance under a program supported by a two-year PLL arrangement).

The PLL facility, which was introduced in 2011, provides financing to meet actual or potential balance of payments needs of countries with sound policies, and is intended to serve as insurance or help resolve crises under wide-ranging situations. Fund policy calls for an EPE within one year of the end of an arrangement with exceptional access.

Executive Board Assessment

Regarding the ex post evaluation of the second (2014–16) PLL arrangement, Directors considered that it effectively supported the authorities’ reform program, providing them with a backstop against potential exogenous shocks. Directors concurred that the authorities met their objective of reducing vulnerabilities, and that the arrangement supported reforms to strengthen macroeconomic stability by continuing to reduce fiscal and current account deficits. They noted, however, that growth turned out to be lower than expected and, while unemployment declined, much remained to be done to ensure higher and more inclusive growth. Directors agreed that the arrangement was consistent with the PLL qualification standards and the requirements under the exceptional access policy. With the benefit of hindsight, Directors also noted some useful lessons learned about program design and implementation, particularly the need to rely on more realistic economic growth projections and the conclusion that with strong ownership, parsimonious conditionality can be effective in delivering on program commitments.

Continue Reading