MENAFN.com
(MENAFN) The International Monetary Fund (IMF) is set to give a total of USD8.2 billion loans to Jordan and Morocco to help them overcome higher-oil bill hit, economic restraints from regional instability and a ballooning euro zone crisis, Reuters reported.
The IMF approved a USD6.2 billion precautionary line of credit for Morocco over two years, which it said the government would treat as “insurance” in case economic conditions deteriorate and it faced sudden financing needs.
IMF Managing Director Christine Lagarde said Morocco’s economic policies have contributed to strong growth, low inflation and a resilient banking sector. But the country has been hard hit by a decline in trade from the euro zone.
Jordan will get the USD2 billion loan from the IMF, announced in July, as the Kingdom faces financial hurdles due to regional protests and gas supply disruptions from Egypt, which forced it to shift to more expensive oil for power generation.
Jordan’s economic growth slowed to 3 percent year-on-year in the first quarter over weaker private sector growth.
The country was also hurt by the unrest from the Arab Spring in neighboring countries including Syria and Egypt, while boosted social spending to quell unrest has further drained its public finances.
