Rabat – Loans under guarantee programs “Relance TPE” and “Damane Relance” have benefited more than 15,183 companies since their launch, Morocco’s Central Guarantee Fund (CCG) announced on Tuesday.
The loans amounted to MAD 22.4 billion ($2.44 billion), including MAD 19.7 billion ($2.14 billion) that the CCG covered.
Launched on June 15, “Relance TPE” and “Damane Relance” aim to mitigate the negative impact of the COVID-19 crisis. Morocco’s Economic Monitoring Committee initiated the programs to help Moroccan businesses relaunch their activity and gradually return to their normal level.
The two programs provide state-guaranteed loans for businesses in Morocco to cover their operational costs. The companies can spread their repayment of the loans over a period of seven years, with a grace period of two years.
“Relance TPE” mainly benefits micro-sized businesses, including sellers, artisans, cooperatives, and independent workers. The program guarantees up to 95% of loans for companies with an annual turnover of less than MAD 10 million ($1.09 million).
Loans under the program have a minimum value of MAD 10,000 ($1,090) and can reach up to 10% of the business’s turnover.
According to CCG’s recent figures, “Relance TPE” benefited over 10,756 companies. The loans’ total value reached MAD 2.4 billion ($261.5 million), including MAD 2.3 billion ($250.6 million) guaranteed by the fund.
Larger businesses
Meanwhile, “Damane Relance” benefited 4,427 companies. The businesses received loans that amounted to MAD 20 billion ($2.18 billion), including MAD 17.4 billion ($1.9 billion) covered by the state.
“Damane Relance” is dedicated to small, mid-sized, and large companies with an annual turnover exceeding MAD 10 million ($1.09 million). Under the program, businesses in Morocco’s industrial sector can apply for loans amounting to their monthly turnover multiplied by 1.5. Companies operating in other sectors can receive loans equaling the value of their monthly gross revenue.
Guarantees under the second program cover 80% to 90% of the loan’s value, on the condition that 50% of companies’ loans go towards paying their suppliers and other intercompany debts.
CCG revealed that the industrial sector benefited the most from the loan mechanisms, with 33% of the overall loans’ value going to the secondary sector. Morocco’s trade and commerce sector benefited from 31% of the loans. The construction sector came third, benefiting from 17% of the loans.
