Bank Al-Maghrib Initiated Set of Measures to Facilitate Access of Enterprises To Funding, Pursuant to HM the King's Instructions
Rabat - Governor of Bank Al-Maghrib Abdelatif Jouahri said, on Monday in Rabat in a speech before HM King Mohammed VI, that the Bank adopted a set of measures to facilitate access of enterprises to funding, pursuant to the Royal Instructions laid down in the Royal Speech on the occasion of the opening of the autumn parliamentary session on Oct. 11, 2019.
Speaking on the occasion of the presentation of the "Integrated Program To Support and Finance Enterprises" and the signing ceremony of relating agreements, chaired by HM the King, Jouahri pointed out that these measures include the establishment of an unlimited refinancing mechanism by Bank Al-Maghrib of all credits granted to the categories mentioned by the Sovereign in this speech, whether they are operating or investment loans.
This refinancing mechanism will also benefit funding for the agricultural sector and projects carried out in rural areas, said Jouahri, noting that this mechanism is an addition to the special program set up in 2012 by Bank Al-Maghrib and relating to direct refinancing of bank loans granted to very small, small and medium-sized enterprises. It also concerns the application of a preferential interest rate of 1.25 pc as part of the refinancing mechanism of the banks in the target categories, that is 100 points less than the key rate of Bank Al-Maghrib, and the reduction in equity capital requirements as part of the precautionary rules applied to banks with regard to the loans they grant to these categories, he said. Jouahri also said that Bank Al-Maghrib started developing, in collaboration with the Ministry of Economy, Finance and Administration Reform and the GPBM, a model of detailed reports which will be submitted by the banks and which will make it possible to follow, in a precise manner, the indicators relating to the different categories of loans, their geographical and sectoral distribution and, if necessary, the reasons for refusal of loans.
Bank Al Maghrib will ensure the monitoring of the implementation of this program, through the establishment of periodic reports which will be submitted to the Sovereign, he said.
Jouahri also pointed out that the success of this program is the responsibility of all the stakeholders concerned, in particular the banking sector, public establishments and the beneficiary citizens who must be committed in a positive way to this program and ensure that they honor their commitments.
Jouahri affirmed that within the framework of the implementation of the National Strategy for Financial Inclusion, whose implementation started in 2019, priority will be given to measures and procedures intended for the categories mentioned in the Royal Speech.
Speaking on the occasion of the presentation of the "Integrated Program To Support and Finance Enterprises" and the signing ceremony of relating agreements, chaired by HM the King, Jouahri pointed out that these measures include the establishment of an unlimited refinancing mechanism by Bank Al-Maghrib of all credits granted to the categories mentioned by the Sovereign in this speech, whether they are operating or investment loans.
This refinancing mechanism will also benefit funding for the agricultural sector and projects carried out in rural areas, said Jouahri, noting that this mechanism is an addition to the special program set up in 2012 by Bank Al-Maghrib and relating to direct refinancing of bank loans granted to very small, small and medium-sized enterprises. It also concerns the application of a preferential interest rate of 1.25 pc as part of the refinancing mechanism of the banks in the target categories, that is 100 points less than the key rate of Bank Al-Maghrib, and the reduction in equity capital requirements as part of the precautionary rules applied to banks with regard to the loans they grant to these categories, he said. Jouahri also said that Bank Al-Maghrib started developing, in collaboration with the Ministry of Economy, Finance and Administration Reform and the GPBM, a model of detailed reports which will be submitted by the banks and which will make it possible to follow, in a precise manner, the indicators relating to the different categories of loans, their geographical and sectoral distribution and, if necessary, the reasons for refusal of loans.
Bank Al Maghrib will ensure the monitoring of the implementation of this program, through the establishment of periodic reports which will be submitted to the Sovereign, he said.
Jouahri also pointed out that the success of this program is the responsibility of all the stakeholders concerned, in particular the banking sector, public establishments and the beneficiary citizens who must be committed in a positive way to this program and ensure that they honor their commitments.
Jouahri affirmed that within the framework of the implementation of the National Strategy for Financial Inclusion, whose implementation started in 2019, priority will be given to measures and procedures intended for the categories mentioned in the Royal Speech.
Source : https://www.emouaten.com/english/Bank-Al-Maghrib-I...