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Friday 17 January 2020

Morocco, WB Ink Agreement on Development Policy for Risks Linked To Natural Disasters for $275 mln

Vocal synthesis
Morocco, WB Ink Agreement on Development Policy for Risks Linked To Natural Disasters for $275 mln

An agreement relating to development policy with a deferred drawdown option for risks linked to natural disasters for an amount of 275 million dollars was signed, on Thursday in Rabat, by Minister of Economy, Finance and Administrative Reform Mohamed Benchaaboun and Director of the Maghreb and Malta Department of the World Bank Jesko Hentschel.

Speaking at the signing ceremony, Benchaaboun explained that this agreement concerns a precautionary line of 275 million dollars which can be used in catastrophic events and which constitutes a guarantee for Morocco, adding that this line falls within the framework of the structuring of the system which manages catastrophic events in the country, through the establishment of a regime to cover the consequences of catastrophic events, which came into force on January 1, 2020.

This regime, which covers the entire Moroccan population, consists of an insurance component for the benefit of persons holding an insurance contract and a benefit component for the benefit of persons without coverage, who will benefit from the Solidarity Fund Against Catastrophic Events, said the minister, adding that this fund which is financed by the state budget by up to 800 million dirhams, will be supplemented by 275 million dollars from the precautionary line.

For his part, Hentschel lauded the quality and diversity of cooperation relations between Morocco and the World Bank, welcoming the efforts made by Morocco at the institutional level to cover and manage the consequences of catastrophic events, in particular through the creation of the Solidarity Fund Against Catastrophic Events.

Regarding the precautionary line, he noted that it is an insurance for Morocco against catastrophic events, adding that the World Bank is providing support to Morocco to face future risks linked to natural disasters given the climate change, which is very important for the future of the country.

MAP 16 January 2020