The IMF’s Executive Board signed off on a USD 1.3 bn Resilience and Sustainability Facility (RSF) for Morocco, according to a statement by the multilateral lender. The IMF had reached a staff-level agreement with Morocco last month on the loan. The arrangement follows a separate USD 5 bn Flexible Credit Line arrangement approved (pdf) in April 2023 in response to slowed growth and raised inflation due to severe drought and spillovers from Russia’s invasion of Ukraine.

The details: The RSF arrangement will help Morocco “address climate vulnerabilities, bolster its resilience against climate change, and seize the opportunities from decarbonization,” the statement said, adding that it will also help Morocco’s government strengthen its preparedness for natural catastrophes while stimulating financing for sustainable development.

What they said: “Climate change represents a major risk to Morocco’s development but also offers opportunities. Drought and water scarcity have become a major source of macroeconomic volatility, with particularly adverse impacts on agriculture, while the fallout from the recent earthquake points to the potential implications of natural disasters, including from climate change,” IMF’s Deputy Managing Director and Acting Chair Kenji Okamura said according to the statement.

Morocco is a strategic partner in the global climate fight: “Morocco is well-placed to reap the benefits of the global decarbonization agenda. Deploying this potential represents an opportunity for Morocco to put economic growth on a stronger and more resilient path,” Okamura added.