Morocco’s Central Bank Triples Refinancing Capacity to Boost Economy Amid COVID-19

Supporting access to bank credit for households and businesses in order to cope with the consequences of the coronavirus. This is the objective pursued by Bank Al-Maghrib by adopting a battery of new monetary policy measures.

With these new measures, the banks’ refinancing capacity with Bank Al-Maghrib will be tripled, a press release from the bank informs. This means that banks will be able to use all the refinancing instruments available in dirhams and in foreign currency. A range of securities and effects of the central bank is offered to the banks.

The new measures of the central bank take into account the strengthening of its specific refinancing program for very small enterprises and small and medium-sized enterprises, with investment and operating loans, with the increase in the frequency of their refinancing, the press release specifies.

Accompanying measures for credit institutions in the prudential area, taking into account the requirements of liquidity, capital and provisioning of receivables to strengthen the capacity of these institutions, to support households and businesses affected by the covid-19 crisis, are also taken into account by the new measures of Bank Al-Maghrib.

The central bank is very committed to the fight against covid-19. That is why it will continue to monitor and analyze the consequences of the health crisis on the Moroccan economy and the financial system and will take the necessary measures if necessary.