IMF approves new loans to Morocco, Jordan

Washington/Rabat, 04 Aug – (ANA) - The International Monetary Fund (IMF) yesterday approved loans to Morocco and Jordan after they were hit by costlier energy bills, economic restraints from regional instability and an escalating euro zone crisis. The IMF approved a $ 6.2 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.

The IMF board also approved a $ 2 billion loan to Jordan, announced last month. Jordan's finances were hurt by regional protests and supply disruptions from Egypt forced it to switch from gas to more expensive oil for power generation.

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. (ANA)

FA/ANA/4 August 2012--------