PROGRAMME D'AJUSTEMENT STRUCTUREL

The present operation is a support to the Government of the Kingdom of Morocco for the implementation of the measures contained in its medium-term economic adjustment program. It will be used to finance part of the foreign exchange expenditures for supplies and eligible equipment and necessary for the proper implementation of the adjustment program which has been defined for the period 1988-1989. This program is in keeping with the objectives set by the Moroccan authorities for the period of the Orientation and Social Development Plan covering the period 1988-1992. The program essentially consists of introducing reforms to: (i) conduct a fiscal, fiscal and monetary policy consistent with the objectives of price stability and the financing of private investment at a reasonable cost; (ii) pursue liberalization of foreign trade accompanied by a flexible exchange rate policy as well as export and investment promotion; (iii) develop a forward-looking strategy for debt management.