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EIB Pledges €1 Billion for Morocco's Earthquake Recovery Efforts

The European Investment Bank (EIB) will lend Morocco 1 billion euros over the next three years to support the north African country's reconstruction efforts (AP)
The European Investment Bank (EIB) will lend Morocco 1 billion euros over the next three years to support the north African country's reconstruction efforts (AP)
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EIB Pledges €1 Billion for Morocco's Earthquake Recovery Efforts

The European Investment Bank (EIB) will lend Morocco 1 billion euros over the next three years to support the north African country's reconstruction efforts (AP)
The European Investment Bank (EIB) will lend Morocco 1 billion euros over the next three years to support the north African country's reconstruction efforts (AP)

The European Investment Bank (EIB) said on Wednesday it will lend Morocco 1 billion euros over the next three years to support the north African country's reconstruction efforts after an earthquake that struck the Al Haouz region on September 8.

This financing is completely aligned with Morocco's ambitious national recovery program, which will mobilize €12 billion over the next five years on a post-earthquake reconstruction plan that includes the upgrade of infrastructure, EIB said in a statement.

The loan announcement was made by EIB’s Vice-President, Ricardo Mourinho Felix, after meeting with Fouzi Lekjaa, Morocco’s Vice-Minister overseeing the Budget on the margins of the World Bank Group-IMF Annual Meetings in Marrakech.

Also present were Lionel Rapaille, EIB's Director of Operations for EU Neighboring Countries, and Adrien de Bassompierre, the EIB representative in Morocco.

The EIB's contribution is underpinned by a vision of resilience and sustainability, the statement said. It added that funds will be used to repair damage from the earthquake and rebuild better, with a focus on resilient and sustainable infrastructure, leveraging the Bank’s resources and expertise.

“As a long-standing partner of Morocco, we aim not just to rebuild what was lost, but also to contribute to laying the foundations for a brighter, stronger and more resilient future across all the regions in Morocco affected by the September earthquake,” said Ricardo Félix, who is responsible for financing in Morocco.

“Our role as the EU bank is not just about providing financing, it is also a strong commitment to advancing development, and supporting resilience and climate action hand-in-hand with our partners,” he added.

 

 

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Arab World

UN Warns of Profound Liquidity Crisis in Yemen’s Houthi-Controlled Areas

For the first time, the Houthis will face difficulties in financial transfers and foreign currency supply (local media)
For the first time, the Houthis will face difficulties in financial transfers and foreign currency supply (local media)
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UN Warns of Profound Liquidity Crisis in Yemen’s Houthi-Controlled Areas

For the first time, the Houthis will face difficulties in financial transfers and foreign currency supply (local media)
For the first time, the Houthis will face difficulties in financial transfers and foreign currency supply (local media)

A UN program recently warned of low foreign currency reserves and a liquidity crisis in Houthi-controlled areas if the economic conflict with the internationally recognized government continues in Yemen.

It also noted that the poor food consumption significantly worsened in the north, increasing by 78% year-on-year, compared to a 52% increase in the south.

In its Food Security Update, the World Food Program (WFP) warned that a banking crisis is looming in Yemen, as a transaction ban has been announced between the intentionally recognized government and the Houthis-controlled areas.

“These developments, coupled with diminished foreign currency reserves in the north, could result in liquidity crisis with profound implications on markets, livelihoods, and food security situation,” it said.

The Program also noted that the current escalation in the “economic conflict” is likely to disrupt the flow of remittances and the overall financial and banking sectors, posing significant challenges for importers to procure essential food and non-food items, and ultimately impacting food supply and food price.

According to the WFP Update, this conflict comes while limited income opportunities are a key challenge to accessing food, reported by 71% in the north and 60% in the south.

It added that the depth and severity of food deprivation (poor food consumption) also peaked in May, at 32% in the north and 31% in the south.

This trend significantly worsened in the north, increasing by 78% year-on-year, compared to a 52% increase in the south.

Severe food deprivation reached an all-time high in Al Jawf, Al Bayda, Hajjah, Amran, and Al Hodeidah, WFP said.

Around 8% of households in the north reported relying on begging to meet their essential needs, compared to three percent in the south, it showed, adding that this practice was particularly pronounced in Sadah, Hajjah, Amran, and Al Bayda.

WFP also said the total volume of fuel imported via the Red Sea ports increased by 32% during Jan-May 2024 compared to the same period in 2023.

Fuel imports via the southern ports of Aden and Mukalla decreased by 41% year-on-year, as local crude oil production from Marib largely contributes to covering domestic fuel needs in government controlled areas.

However, the WFP update said it is crucial to closely monitor import flows over the coming months, especially given the increased insurance costs for Yemeni ports, the diminished foreign currency reserves, and the banking crisis.

Also, by the end of May 2024, WFP said that the Yemeni riyal (YER) depreciated to an all-time low of YER 1,749 per dollar in government-controlled areas, losing around 25% of its value against the US dollar year-on-year.

“This decline is primarily attributed to low foreign currency reserves and revenue shortages due to reduced crude oil exports,” it said.

The UN program also noted that the overall volume of food imports via all Yemeni seaports increased by 22% during the first five months of 2024 compared to the same period in 2023.

However, it showed that the Red Sea ports saw a 35% annual rise in food imports during Jan-May 2024, while the southern ports of Aden and Mukalla exhibited a 16% annual decline.