The financial agreement aims to support Moroccan businesses in the agricultural sector.
Rabat – The French Development Agency (AFD) has agreed to give the Moroccan bank Credit Agricole du Maroc (CAM) a MAD 560 million ($54 million) credit line.
The two financial institutions have also signed an agreement worth MAD 16.8 million ($1.6 million) to support Moroccan farms and agro-industrial units.
The agreements aim to encourage sustainable development projects and protect natural resources, a statement from CAM announced today, April 16.
Due to the COVID-19 crisis, the AFD has already made an advance payment of MAD 336 million ($33 million) to the Moroccan bank.
The credit line will facilitate the access of Moroccan micro-, small-, and mid-sized companies to financing during the exceptional economic circumstances imposed by the COVID-19 pandemic.
The financial agreement “will enable us to support and strengthen our actions in support of the agricultural and agro-industrial sectors and to continue to effectively carry out our mission of public service and support for disadvantaged populations,” said CAM Chairman Tariq Sijilmassi.
“The new line consolidates and confirms the lasting relationship between our institution and the AFD. We are particularly pleased about this, especially as it is the fourth line that has been set up in our favor,” he added.
The new agreements come in a time when Morocco’s financial institutions are in need of as many resources as possible.
On April 7, the Finance and Economic Development Committee at the House of Representatives approved a draft decree-law that allows the government to exceed the limit of its external loans.
The decision aims to fulfill Morocco’s need in foreign exchange, as the impact of COVID-19 on tourism, foreign direct investment, export, and remittances from Moroccans living abroad has threatened the country’s foreign currency reserve.