EU Allocates $200 Million Loan to Morocco for Earthquake Recovery Efforts
The European Union will provide a €190 million ($200 million) loan to Morocco for recovery from the severe earthquake that occurred in September 2023. This funding aims to rebuild homes, restore essential services, and stimulate local economies, adding to the EU’s total aid to €1 billion. Despite this assistance, Morocco anticipates economic growth will slow to 2.8 percent in 2024 due to agricultural setbacks.
The European Union (EU) has pledged a €190 million ($200 million) loan to assist Morocco in the reconstruction and rehabilitation of areas affected by the devastating earthquake that struck in September 2023. This funding will primarily focus on rebuilding housing, restoring critical public services such as health care and education, and revitalizing local economies. Following this contribution, the EU will collectively offer up to €1 billion in aid for earthquake recovery, as announced by EU Commissioner for Neighborhood and Enlargement, Oliver Varhelyi, during a recent press event.
The earthquake, registering a magnitude of 6.8, was the most powerful in Morocco’s history. It tragically resulted in nearly 3,000 deaths and left over 6,000 individuals injured. In addition to this aid initiative, the European Bank for Reconstruction and Development has recently approved a separate €200 million loan to Morocco’s OCP Group, aimed at enhancing water security through the development of new desalination facilities.
Amid these efforts, Morocco’s economy is projected to experience a slowdown in growth to 2.8 percent in 2024, largely due to a significant contraction in the agricultural sector, which is expected to decline by 7 percent. Despite these challenges, the financial support from the EU underscores ongoing international partnerships aimed at recovery and economic stability for Morocco.
In September 2023, Morocco faced its most severe earthquake in history, which prompted significant international aid efforts to support recovery and rebuilding in the impacted areas. The tragedy resulted in substantial human and economic losses, making the subsequent assistance from the European Union critical for Reconstruction initiatives. The EU’s commitment to providing financial aid reflects its support for Morocco during this challenging period, as well as the broader implications for regional stability and development.
The timely support from the European Union in the form of a €190 million loan underscores the importance of international collaboration in disaster recovery efforts. With the ongoing challenges posed by the recent earthquake, Morocco’s recovery strategy is crucial not only for restoring infrastructure but also for ensuring the welfare of its citizens. Financial assistance from reputable organizations will be essential in navigating the economic downturn projected for 2024.
Original Source: www.agbi.com
