The AMF has completed the launch of “Buna Platform” which aims to support regional financial integration and encourage inter-Arab trade and investments
The AMF extended a new Compensatory Loan to the Kingdom of Morocco, with the amount of Arab Accounting Dinar 41.125 million, the equivalent of approximately USD 166 million. The agreement was signed on Wednesday, January 11, 2023, by HE Nadia Fettah, Minister of Economy and Finance, on behalf of the Kingdom of Morocco, and HE Dr. Abdulrahman A. Al Hamidy, Director General Chairman of the Board of Executive Directors of the AMF, on behalf of the AMF, with the aim to provide financial support to strengthen the country’s financial position and meet emergency needs. The loan was disbursed on Thursday, February 2, 2023
On this occasion, her Excellency the Moroccan Minister of Economy and Finance expressed her appreciation for the support provided by the AMF and the important role it plays in strengthening the ability of Arab countries to maintain economic stability and face current challenges. In turn, his Excellency the Director General of the AMF congratulated the Kingdom of Morocco on its success in implementing the economic reform programs, which largely contribute to improving the outlook for its credit rating by rating agencies, stressing the AMF keenness to continue the fruitful partnership with the Moroccan government to help the country address the different challenges in the most effective way.
In this respect, the AMF has also finalized the procedures to withdraw the second tranche of the exiting loan to the Kingdom of Morocco, to support a reform program aiming to enhance a conducive environment for small and medium-sized enterprises. The mentioned tranche is of the value of Arab Accounting Dinar 5.1 million, withdrawn on 23 December 2022.
The AMF is currently studying financing requests from other member countries, and is processing the requests through expeditious procedures, in order to provide support as quickly as possible, so that the borrowing member countries can meet financing needs and enhance their financial positions to face various challenges, especially in such times.
The Arab Monetary Fund (AMF) supports the efforts of its member countries to implement economic and structural reforms, in face of various challenges, through a number of means, including financing the needs of the balance of payments and public budgets, and financing trade through its affiliate the Arab Trade Financing Program, in addition to its role in promoting policy dialogue and consultation on economic, financial and development issues via its various forums and activities, providing technical advice to member countries in the field of economic, fiscal and financial policies, and providing training for government officials in member countries through its Institute for Training and Capacity Building.
Moreover, within the framework of its endeavours to support regional financial integration, encourage inter-Arab trade and investments and link with the main trading partners of Arab countries, the AMF completed the establishment of the Arab Regional Payments Clearing and Settlement Organization “Buna Platform” with the aim of encouraging the use of Arab currencies in inter-financial and investment transactions, and contributing to strengthening compliance in clearing and settling these transactions. It is worth noting that “Buna Platform” is in line with relevant international standards and has international acceptance, as it is seen as a model for alignment with the G20 directions to enhance cross-border payments.