Bank Al-Maghrib’s measures concern both households and businesses.
Rabat – Morocco’s central bank, Bank Al-Maghrib, announced on March 29 its adoption of new measures to leverage the country’s banking system and economy in response to the repercussions of the COVID-19 pandemic.
Bank Al-Maghrib implemented monetary and prudential policies to support access to loans for households and businesses. The measures will triple commercial banks’ refinancing capacity, which is the ability to get new loans with lower interest rates, with the Moroccan central bank.
The central bank is offering banks financial instruments in Moroccan dirhams and in foreign currency, accepting a wide range of securities from commercial banks in exchange for the refinancing, and extending the duration of the loans.
The central bank measures are also meant to assist the financial health of financial institutions in Morocco, focusing on their levels of liquidity, equity, and solvency.
The news comes amid anticipated economic stagnation in 2020. Earlier this month, Bank Al-Maghrib estimated that Morocco’s economic growth will stagnate at 2.3% in 2020, citing the COVID-19 pandemic as the primary reason for the stagnation.
The national economy, however, is expected to recover from the hit in 2021 with a 3.8% growth.
Bank Al-Maghrib is also reinforcing its program for micro, small, and medium enterprises (MSMEs) by extending refinancing periods. This measure adds to previously established investment and operating loan offers targeting MSMEs.
The economic impacts of the COVID-19 pandemic are felt in Morocco and around the world. A number of businesses and employees are struggling with the disruption caused by the pandemic, unable to maintain their workforce and jobs.