IMF approves final tranche of Morocco’s RSF loan: The International Monetary Fund (IMF) has approved a disbursement of USD 496 mn to Morocco — the final tranche of a USD 1.3 bn loan under the institution’s Resilience and Sustainability Facility (RSF), according to a press release issued on Tuesday. The disbursed funds will help Morocco manage its strained water resources, liberalize the electricity sector, and strengthen fiscal buffers.

The loan was initially planned to support rolling out a carbon tax, but the authorities held off the plans to assess its potential impact on industries, as well as deliberate with stakeholders, according to the IMF press release. Morocco considered rolling out the tax back in September 2024, which could raise its GDP by 0.8% if the OECD’s recommended taxation strategy is used.

REMEMBER- The IMF’s Executive Board signed off on the facility in 2023 to “address climate vulnerabilities, bolster resilience against climate change, and seize the opportunities from decarbonization.” The IMF also approved a USD 415 mn disbursement from the facility last November.

Drought troubles: The kingdom has been experiencing five years of drought, with water inflows declining from 2.5k cbm per capita annually in 1960 to 620 cbm in 2020. In 2023, the country approached the absolute water scarcity threshold of 500 cbm per capita per year.

OTHER DEBT UPDATES FROM MOROCCO-

EBRD backs climate-resilient economic zone at Nador West Med: The European Bank for Reconstruction and Development (EBRD) is extending a EUR 110 mn senior loan to Betoya Industriel and Logistic Zone (BILZ) to develop a climate-resilient economic zone within the Nador West Med (NWM) industrial port complex, according to a statement issued on Tuesday.

There’s more: The sovereign-backed loan is supplemented by three grants totaling EUR 10.1 mn from EBRD, the multilateral Global Environment Facility, and the UK under the EBRD-sponsored High-Impact Partnership on Climate Action.

Where’s the money going? The financing will fund land development for the zone’s industrial and logistics platforms. It will also support sustainable and energy-efficient infrastructure developments, including an on-site desalination plant, two wastewater treatment plants, and energy-efficient street lighting.

About BILZ: BILZ — a wholly-owned subsidiary of state-run Société Nador West Med — was established in 2023 to manage and develop the economic zone adjacent to Nador West Med port.

This isn’t EBRD’s first financing for the Nador West Med project: The Bank previously extended a EUR 100 mn loan in 2022 to Société Nador West Med for the construction of the port, as a second tranche of a EUR 200 mn financing agreement inked in 2015.

IN OTHER EBRD NEWS-

EBRD loans Turkey’s Uludağ EUR 25 mn: The European Bank for Reconstruction and Development (EBRD) has approved a EUR 25 mn loan to Turkish soft drinks firm Uludağ to support renewable energy uptake and production lines, according to a press release issued on Monday. The company will use the funds to set up two septic production lines in their Yenice factory that will operate with less energy-intensive sterilization methods, using a lower amount of chemicals. The money will also go towards installing solar panels at the factory.

EBRD 💚 Turkey’s green projects: Earlier last month, EBRD extended a EUR 80 mn loan to agrifood firm Ulusoy Un to support its shift to renewable power. The bank also announced a EUR 39.7 mn loan to Kavram Enerji to support solar projects in December. EBRD is also backing QNB Finansleasing’s on-lending program for green initiatives with a EUR 25 mn loan.

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