WASHINGTON: The International Monetary Fund (IMF) and World Bank (WB) will decide on Monday whether to proceed with the October 9 to 15 annual meetings in earthquake-affected Morocco after completing a thorough review of the country’s ability to host the meetings, IMF Managing Director Kristalina Georgieva said.
In an exclusive interview, Georgieva disclosed that the IMF has reached a staff-level agreement with Morocco to provide a $1.3 billion loan from the Fund’s new Resilience and Sustainability Trust. This loan aims to enhance Morocco’s preparedness for climate-related disasters.
There has been uncertainty surrounding the decision to hold the annual meetings in Marrakech, a prominent tourist destination in Morocco, following a devastating earthquake with a magnitude of 6.8 in the High Atlas Mountains, resulting in the loss of over 2,900 lives. Despite some damage to Marrakech’s ancient Medina quarter, Moroccan authorities have urged the IMF and World Bank to proceed with the meetings, which are expected to draw 10,000 to 15,000 participants.
Georgieva emphasized the Moroccan government’s strong commitment to hosting the meetings, citing discussions with Prime Minister Aziz Akhannouch. She expressed concern that the IMF and World Bank do not want to impose a burden on the country during its recovery efforts. However, the prime minister highlighted the importance of these meetings for Morocco’s hospitality sector and suggested potential simplifications, such as reducing the duration and scaling back attendance.
Georgieva assured that a decision considering all factors, including logistical feasibility, would be made by Monday. She noted that security for participants was not a major concern.
The $1.3 billion Resilience and Sustainability Trust (RST) loan for Morocco requires approval from the IMF’s Executive Board, which is expected to take place approximately two weeks before the annual meetings commence. While not directly linked to the earthquake disaster, this loan aims to enhance the country’s resilience to climate-related challenges like drought and strengthen its overall financial capacity.
Additionally, Morocco has access to a $5 billion flexible credit line from the IMF, approved in April, which is intended to bolster the country’s crisis prevention capabilities.
