European banking institutions have ramped up support for Morocco amid the COVID-19 crisis.
Rabat – The European Bank for Reconstruction and Development (EBRD) mobilized on Tuesday €300 million worth of loans for the benefit of three public enterprises in Morocco.
The National Airports Office (ONDA), the National Company of Highways of Morocco (ADM), and the National Office for Electricity and Drinking Water (ONEE) are set to benefit from the loans, according to a press release quoted by Morocco’s state media.
Morocco’s economy minister Mohamed Benchaaboun signed the loan agreements with the EBRD on Tuesday to support the public enterprises’ recovery from the COVID-19 crisis.
The loans are in line with the Ministry of Economy’s ongoing coordination with the EBRD.
The financial support also includes technical assistance to help the three entities modernize their governance.
Minister Benchaaboun and the Vice-President of the EBRD, Alain Pilloux, welcomed the strong partnership between Morocco and the EBRD. The Moroccan minister invited the bank to expand its support for the recovery of other public enterprises in the country as well as the private sector.
Pilloux said the EBRD is happy “to provide liquidity to public companies to support Morocco during this unprecedented crisis,” according to the same source.
The vice-president added that Morocco’s economic reforms “should contribute in the future to strengthening the resilience of public enterprises and guarantee the continuity of quality services to the Moroccan population.”
European banking institutions have ramped up support for Morocco amid the COVID-19 crisis.
Earlier in August, the EBRD also concluded a loan to support Morocco’s small businesses, allocating €40 million to the Moroccan branch of CaixaBank. A week prior, the EBRD and Morocco’s CIH Bank agreed to a €40 million financing program to the same end.
The EBRD and Morocco have finalized several loan agreements targeting small businesses in recent months. The European institution has also pledged to support the recovery of Morocco’s tourism sector.
The new loan agreements with EBRD follow the European Investment Bank’s (EIB) release of €100 million to support Morocco’s fight against the pandemic. The funds are part of a €200 million package.
Last week, EIB signed a loan agreement with Morocco’s Al Amana Microfinance NGO to assist micro-enterprises and very small enterprises.
In April, EIB loaned €440 million for the benefit of Morocco’s private sector.
EIB has granted Morocco over €5 billion in funding since 2007.
