TUNIS- Morocco has drawn on International Monetary Fund (IMF) credit to help offset the economic shock from the coronavirus, the Finance Ministry and central bank said on Wednesday, as the state planning agency forecast a contraction this quarter.

"Drawing on the line would help mitigate the impact of the crisis on our economy and maintain foreign exchange reserves," the ministry and the central bank said in a statement.

The $3 billion liquidity line was first agreed in 2012 and renewed in 2018 as a precautionary measures against any potential extreme economic shocks, and the first withdrawal took place on Tuesday, the statement said.

Morocco imposed a lockdown from March 20 to reduce the spread of the coronavirus, with over a thousand cases confirmed in the country. Meanwhile, poor rainfall has affected agriculture, which makes up 11.7% of the economy.

The economy will contract by 1.8% in the second quarter after growing by 1.1% in the first quarter, the official planning agency said earlier.

It estimated that the lockdown would cut 3.8 percentage points off growth in April alone, equivalent to 10.9 billion dirhams ($1 billion), after a loss 4.1 billion in March.

Morocco's public debt stood at 66.1% of gross domestic product (GDP) in 2019, while foreign exchange reserves totalled 242 billion dirhams at the end of March, official data showed.

Morocco also plans an international bond this year after it suspended the ceiling on foreign debt in preparation for a drop in foreign exchange reserves as the coronavirus hits its exports, remittances, foreign investment and tourism.

Demand for Moroccan exports fell by 3.5% in the first quarter compared with the same period of 2019, and is expected to fall by 6% year-on-year in the second quarter, the planning agency said.

However, demand for fruit and vegetable exports is rising as a labour shortage caused by the coronavirus has hit agricultural production in southern Europe, it added.

The automotive sector, representing 27% of export sales, has been disrupted by falling demand and the temporary closing of Renault and Peugeot assembly plants, it said.

Phosphates and derivatives exports fell by 40% in value in the first quarter due to lower prices, it said. However, falling energy prices will reduce import costs, partly offsetting the lower value of exports, it said.

Money supply grew in the first three months by 3.6% from 3.7% the previous quarter.

(Reporting By Ahmed El Jechtimi, writing by Angus McDowall; editing by Hugh Lawson, Larry King) ((angus.mcdowall@thomsonreuters.com; Reuters Messaging: angus.mcdowall.thomsonreuters.com@reuters.net))