The International Monetary Fund (IMF) approved Friday a 6.2 billion U.S. dollars liquidity line for Morocco to help protect the country against swings in oil prices and potential fallout from the downturn in Europe, the institution said in a statement.
The 24-month loan will provide insurance against external shocks in light of heightened uncertainty worldwide, and allow the authorities to continue with their home-grown reform agenda aimed at boosting inclusive economic growth, the statement added.
"The country has solid economic fundamentals and a track record of implementing sound policies. So this loan is a bit like taking out an insurance policy," said the IMF Morocco mission chief Dominique Guillaume.
The country is on the right track but the world economy is in a particularly fragile situation right now and it is sensible to take precautions in case of a hike in oil prices or if things take a further downturn in Europe, which is Morocco's main trading partner, he added.
According to the IMF, the real GDP growth of Morocco is projected to slow from about 5 percent in 2011 to about 3 percent in 2012, largely as a result of poor rainfall, but is expected to rebound in 2013./.