IMF presses the Moroccan government to implement reforms

The IMF latest statements sound more like an ultimatum to the Moroccan government. The policy of procrastination is no longer acceptable and the IMF can withdraw the liquidity precautionary line if the reforms are dawdling and unyielding the expected results. The IMF confirmed Morocco’s continued eligibility for the USD 6,2billion liquidity precautionary line.

The IMF review confirmed that Morocco is still able to honor its commitment to implement drastic macroeconomic reforms. The decision to grant the continuity of the IMF precautionary line was issued during the IMF administrative council last Wednesday during which it reviewed Morocco’s performance.

The participants to the meeting surveyed the reforms implemented by the Moroccan government. They concluded that despite the budget deficit, the Moroccan government is still capable of fulfilling its commitment towards the international financial institutions. The IMF urged the Moroccan government once again to implement urgent reforms to contain the deficit at all levels and to control public spending.

The IMF urged the Moroccan government to start with the tax reform to ensure equality and to enhance competitiveness? in addition to the necessity to launch an efficient fiscal policy.

The economic expert Mr. Kassal told the Moroccan daily Al Massae that Morocco is likely to lose the confidence it enjoys in the international market and eventually the possibility to have loans with a low interest rates. Benkirane’s government has no choice but to send strong signals to the IMF and other financial institutions through the implementation of drastic and quick reforms especially in the compensation fund and the tax system.