Moroccan Banks Unveil 3-Point Plan to Boost Economy Amid COVID-19 Crisis

Deferral of maturities, amortizable loans, coverage of the working capital needs of companies and the cash needs of banks, are the three strong actions of the banks.

Regarding the deferral of maturities on amortizable loans, the banks grant a 3-month deferral of the repayment of amortizable installments to clients who so desire and make a written request. For VSEs and professionals, the deferral of the payment of the installments of their medium and long-term loans for 3 months and for the banks, the deferral of the medium and long-term installments for 3 months will be granted.

The coverage of working capital needs will make it possible to grant an extension of ongoing operations to companies, to support the drop in their turnover and collections. Support to preserve the payment of salaries, the payment of suppliers and the maintenance of equipment is also planned.

Furthermore, the cash needs of the banks will be based on the easing of the refinancing mechanism with Bank Al-Maghrib, in order not to limit access to the facilities of the applicant and the reduction of the overdraft rate from the current 7% to 2%. This will introduce liquidity and reduce the monetary reserve for a period of 3 months. A relaxation on the part of the central bank with respect to circular 19G is also planned. The GPBM has also requested an easing of prudential rules in order to cushion the tensions on liquidity.