(Ecofin Agency) - Although not directly linked to the violent earthquake that shook the country, the funding is aimed at strengthening Morocco's resilience to climate-related disasters and consolidating its overall financial capacity.
The International Monetary Fund (IMF) has reached a staff-level agreement with Morocco for a $1.3 billion loan. The money will be injected into climate-related projects and enhance the country’s overall financial capacity, according to information relayed by Reuters.
The new financing will be provided as part of the Resilience and Sustainability Facility (RSF), a lending mechanism launched by the IMF in 2022 to assist low- and middle-income countries in addressing long-term structural challenges such as climate change.
As a reminder, the latest official report on the magnitude 7 earthquake that hit the Moroccan province of Al-Haouz, south of Marrakech, reports more than 3,000 deaths and nearly 6,000 injuries. Additionally, infrastructure such as roads, schools, hospitals, and around 50,000 homes were partially or completely destroyed, according to authorities.