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.