Rabat – The European Bank for Reconstruction and Development (EBRD) has allocated a loan of MAD 430 million (€40 million) to Morocco’s branch of CaixaBank.
CaixaBank focuses on development, with the local branch specializing in granting loans to Spanish and Moroccan small- and medium-sized enterprises (SMEs) operating in Morocco.
The loan from EBRD aims to expand or increase “much-needed” funding for local SMEs to address companies’ needs as the COVID-19 crisis continues to take its toll.
In addition, EBRD pledges to support CaixaBank’s expansion strategy in Morocco, to reach SMEs outside of Rabat and Casablanca with service from branches in Tangier and Agadir.
The move adds to EBRD’s several initiatives to support Moroccan-based companies in the COVID-19 crisis.
“In Morocco, the EBRD was one of the first financial institutions to develop financial and advisory instruments to mitigate the impact of the Covid-19 pandemic on the economy,” said the European bank in a press release on Monday.
A similar move took place recently with the participation of Morocco’s CIH Bank. EBRD and CIH signed a partnership to assist SMEs and international activities through a financing program of €40 million.
“The agreement is in line with CIH BANK’s commitment to actively participate in economic recovery efforts by providing reinforced support to Moroccan SMEs, and by ensuring financing solutions adapted to their needs, and products that facilitate their flows, and foreign trade transactions,” said CIH in a statement.
In June, EBRD and the United Nations World Tourism Organisation (UNWTO) pledged their support to the recovery of Morocco’s tourism sector, as well as across other economies where the Bank invests.
The tourism sector, which represents 11% of Morocco’s GDP, is one of the hardest hit due to the COVID-19 crisis.
The support that the two entities pledged will be in line with three main pillars of the UNWTO’s Tourism Recovery Technical Assistance Package.
These include economic recovery, marketing and promotion, as well as institutional strengthening and resilience building.
To date, EBRD has invested €2.4 billion through 65 projects in Morocco, which is one of the founding members of the bank.
