By James Muyanwa –
THE International Monetary Fund (IMF) and Bank Al-Maghrib of Morocco have extended the investment agreement to support IMF lending to low-income countries to 2022.
Under the arrangement the Bank Al-Maghrib has agreed to extend its investment agreement for the benefit of the Poverty Reduction and Growth Trust (PRGT) until 2022 in support of IMF’s concessional
lending to low-income member countries.
The IMF, as trustee of the PRGT, has entered into an amendment of its 2012 investment agreement with Bank Al-Maghrib, through which Morocco committed to provide a subsidy contribution of SDR 1.1 million to the PRGT.
To achieve this goal, the investment agreement with Morocco was extended last Friday by up to five years.
This came to light during the just-ended IMF/World Bank annual meetings here.
This amendment, made effective October 13, 2017, constitutes the first PRGT investment agreement that takes into account the new investment strategy for PRGT assets approved by the IMF Board in March this year.
Morocco’s contribution to the PRGT is important for sustaining the fund’s concessional lending to the IMF’s low-income member countries over the medium-term.
