The International Monetary Fund’s (IMF) executive board yesterday approved a $1.3 billion loan from its new Resilience and Sustainability Trust (RST) to help Morocco bolster its resilience to climate-related disasters, sources familiar with the decision said.
The North African country had requested funds from the IMF’s new trust well before the devastating earthquake that struck in Morocco’s High Atlas Mountains on September 8, killing more than 2,900 people.
The approval comes weeks before Morocco hosts the annual IMF and World Bank meetings, in Marrakech from October 9 to 15.
IMF director Kristalina Georgieva first disclosed the RST loan in an exclusive interview with Reuters earlier this month, noting that the board would review a staff-level agreement with Morocco later in the month.
The IMF had no immediate comment on the board’s decision.
IMF spokesperson Julie Kozack told reporters earlier that the board was slated to review the matter yesterday.
She said a key consideration in the decision to proceed with the IMF-World Bank annual meetings in Marrakech was ensuring that the events did not disrupt vital relief and reconstruction efforts after the earthquake.
Kozack said the meetings would be adapted to the circumstances after the earthquake, but gave no details, saying the schedule was still being finalised.
Kozack said the meetings in Marrakech had been in preparation for five years, having been postponed twice due to the Covid-19 pandemic, and came at a consequential time for the global economy and IMF members.
“I’m confident that these meetings will showcase the strength of Morocco, the Moroccan people and the Moroccan authorities,” she said. “This is the first time in 50 years that the annual meeting will be held on the African continent.”
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