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Tuesday 28 January 2020

Government Adopted with Bank Al-Maghrib and Banking Sector Integrated Program To Support and Finance Enterprises, Economy Minister

Vocal synthesis
Government Adopted with Bank Al-Maghrib and Banking Sector Integrated Program To Support and Finance Enterprises, Economy Minister

Minister of Economy, Finance and Administration Reform Mohammed Benchaaboun said, on Monday in Rabat, in a speech before HM King Mohammed VI, that pursuant to the Royal Instructions concerning the facilitation of access to finance for businesses, the government, Bank Al-Maghrib and the banking sector held several meetings that led to the elaboration of the "Integrated Program to Support and Finance Enterprises".

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, Benchaaboun noted that pursuant to the High Royal Directives laid down in HM the King's speech at the opening of the 2019 parliamentary session, this program touches on three main outlines, namely the entrepreneurial financing, the coordination of actions of support for entrepreneurship at the regional level and the financial inclusion of rural populations.

The Economy Minister affirmed that, under this program, a special account called "the Fund to support entrepreneurship financing" was created under the 2020 Appropriation Bill. The said fund has a budget of 6 billion MAD spanning 3 years, financed equally by the State and the banking sector by up to 3 billion MAD each.

He added that the fund, which mobilizes significant financial resources, will mainly benefit young graduates/project holders and small and medium-sized enterprises to enable them to have access to financing, in addition to support for companies operating in the export sector, and the promotion of the informal sector’s workers.

According to the Minister, this is a new incentive and an integrated framework, based on guarantee, financing, private equity and technical assistance mechanisms, in addition to the revision and improvement of the support intended for exporting companies, especially towards Africa,

He assured, in this regard, that his department will adopt, in collaboration with Bank Al-Maghrib and the banking sector, a more proactive approach, mainly in terms of simplification of procedures, facilitation of guarantee conditions by eliminating personal guarantees, and reduction of the costs of credits.

He explained that this program will contribute to the creation of approximately 27,000 new jobs and to the support of 13,500 additional companies, noting that, pursuant to the Royal Guidelines, the ministry, along with Bank Al-Maghrib, will accelerate the setting up of the national strategy for financial inclusion.

He underlined that the parties concerned will work, as a first step, to achieve greater proximity in the rural world, by pooling the financial and human efforts to ensure that the banking services are offered through optimal use of distribution points, adding that in addition to this facilitation, incentives that encourage and help integrate the informal sector into the economic dynamism will also be taken.

To ensure full success of this program, Benchaaboun said that commissions will be created at the regional level, which will be tasked with coordinating and monitoring the implementation of measures relating to entrepreneurial support, by providing diverse forms of support and guidance to young entrepreneurs, notably at the beginning of their career.

This initiative is meant to come up with urgent responses to contain and overcome the difficulties that hinder access to finance for young project holders and very small and small enterprises, he said, adding that his department will ensure, in coordination with Bank Al Maghrib, the monitoring of the implementation of this program, through the establishment of periodic reports which will be submitted to the Sovereign.

MAP 27 January 2020