AMF extends loan facility worth $127m to Morocco

The financial institution is considering granting another loan to the North African country in the wake of the coronavirus pandemic

The Arab Monetary Fund on Wednesday said it extended a loan facility worth $127 million (Dh466.4m) to Morocco. Getty Images

The Arab Monetary Fund (AMF) extended a loan facility worth $127 million (Dh466.4m) to Morocco to help the country counter the economic fallout from the coronavirus pandemic.

“The AMF follows closely the developments of the Moroccan economy and the challenges it faces due to the current circumstances and works through a fruitful partnership with the Moroccan government to help the country to contain the different challenges in the most effective way,” the AMF said on Wednesday.

The Abu Dhabi-based financial institution said it is studying the possibilities of granting another loan to Morocco to support a reform programme in the public finance sector. The AMF added that the procedures for granting the loan will be completed shortly."

The coronavirus pandemic has disrupted daily life, paralysed air travel and prompted governments to introduce economic stimulus packages worth more than $8 trillion. The global economy is set to contract 3 per cent this year as it slides into the deepest recession since the Great Depression, the International Monetary Fund said last month.

Last week, the AMF said it disbursed a $38m loan to Jordan to support the country's economic reforms and said it is also considering another round of the loan.

The AMF was founded in 1976 to supports its member countries to implement various economic and financial reforms to boost growth. Its member countries include the UAE, Bahrain, Saudi Arabia, Syria, Somalia, Iraq, Oman, Palestine, Kuwait, Lebanon, Libya, Jordan and Egypt.

“The AMF is also keen to provide financial and technical support to its member countries during this period in particular, in light of the developments taking place due to the Covid-19, and the ensuing economic and financial repercussions in different aspects,” the AMF said.

The AMF also said it is “currently studying financing requests from other member countries, and is processing the requests through expeditious procedures, in order to provide support as quickly as possible, so that the borrowing member countries can meet financing needs and enhance their financial positions to face various challenges, especially in such times".

Morocco has more than 7,000 coronavirus cases and 193 deaths as of Wednesday morning, according to data from Johns Hopkins University. Earlier this week, the country extended its national lockdown to contain the spread of the pandemic until June 10.