Morocco’s loan guarantee programs have benefited 80,000 small and mid-sized businesses, saving them from bankruptcy, Minister of Economy Mohamed Benchaaboun announced.
According to Benchaaboun, the country’s loan guarantee programs, which Morocco launched to reduce the impact of the COVID-19 crisis on businesses, have so far covered nearly MAD 50 billion ($5.56 billion) of loans.
The minister announced the figures last week during a session at the House of Councilors. The meeting aimed to discuss the measures Morocco has taken to support Moroccan companies during the crisis, as well as the 2021 Finance Bill.
Morocco launched two major guarantee programs on June 15: Relance TPE and Damane Relance. The two initiatives seek to help Moroccan businesses relaunch their activity and protect them from bankruptcy.
Both programs provide state-guaranteed loans for businesses in Morocco to cover their operational costs. The companies can spread the repayment of their loans over seven years, with a grace period of two years.
Relance TPE benefits micro-sized businesses, including small vendors, artisans, cooperatives, and independent workers, with an annual turnover of less than MAD 10 million ($1.11 million). It guarantees up to 95% of their loans.
Meanwhile, Damane Relance is dedicated to small, mid-sized, and large companies with an annual turnover exceeding MAD 10 million ($1.11 million). It guarantees 80% to 90% of the loan value.
According to Benchaaboun, the two programs have been overall successful in supporting Moroccan businesses and preserving jobs.