IMF approves $1.3 billion loan for Morocco’s earthquake recovery

The International Monetary Fund has approved a $1.3 billion loan to support Morocco’s earthquake recovery efforts.

This loan comes in the aftermath of the devastating earthquake that struck the North African country on September 8, resulting in the loss of thousands of lives, as reported by Anadolu Agency.

The IMF has reached a staff-level agreement with Morocco, providing $1.3 billion in long-term financing. IMF Managing Director, Kristalina Georgieva, stated that the loan will be utilized to assist Morocco in dealing with the challenges posed by climate-related risks

However, the loan is still pending approval from the IMF board, which is set to convene during its annual meetings in the city of Marrakech from October 9-15.

Official figures have confirmed that the earthquake caused the death of nearly 3,000 individuals in Morocco, with thousands more being injured. The city of Marrakesh, located 72 kilometers away from the epicenter, also suffered some damage in its historic Madinah quarter. This earthquake was the strongest to hit Morocco in the past century.

In addition to providing financial support, the IMF and the World Bank are actively collaborating with Moroccan authorities to evaluate Marrakech’s capacity to host the 2023 Annual Meetings of the IMF and World Bank. This assessment is taking into consideration the impact of the earthquake and the recovery efforts being undertaken in the city.

The approval of this loan by the IMF demonstrates the international community’s commitment to standing alongside Morocco during this difficult time.

The funds will play a crucial role in supporting the government’s efforts to rebuild infrastructure, provide healthcare services, and facilitate the recovery of affected communities.

This support will not only aid in addressing the immediate aftermath of the earthquake but will also contribute to the long-term resilience of Morocco in the face of climate-related risks.

The earthquake in Morocco has highlighted the urgency of disaster preparedness and the need for proactive measures to mitigate the impact of such natural disasters.

The country has been working towards strengthening its resilience and disaster management capabilities, and the international assistance provided by the IMF will further enhance these efforts.