Morocco’s Communal Equipment Fund Reports 11% Growth Amid Pandemic

In the first half of the year, net banking income stood at 11% and reached 293 million dirhams at the end of June, compared to 265 million dirhams a year earlier. This success is justified by the good performance of the activity indicators and the optimization of the cost of the resources mobilized. As for the FEC’s NBI, it reached 147 million dirhams in the second quarter of the year, compared to the previous year (132 million dirhams).

In its latest communication, the Fund’s financial debt stood at nearly 20 billion in the first half of the year. This debt is made up in particular of resources mobilized on the domestic financial market, through bond issues. They represent 40% of the overall volume. At the end of June, they stood at 7.76 billion dirhams. As for the treasury loans, they show 6.56 billion dirhams against 1.55 billion dirhams for the domestic financial loans in the first half. As for the external financial loans, they amount to 2.72 billion dirhams, while the subordinated debts have reached 1 billion dirhams.

Furthermore, the health crisis context did not prevent the Fund from honoring its commitments to local authorities on time. It was able to do so thanks to the business continuity plan put in place at the beginning of March 2020. As for the loan commitments for the second quarter, they stood at nearly 1.3 billion dirhams, up 4% compared to the same period in 2019.

They take into account the financing of projects included in the framework of urban upgrading and development programs, the development and strengthening of basic infrastructure, the development of road networks and the fight against social precariousness.

To recall, the overall volume of loan commitments in the first half of the year amounted to 1.81 billion dirhams, up 13% compared to the end of June 2019. As for loan disbursements, they amounted to 1.24 billion dirhams for the first six months of the year and increased by 38% compared to the same period last year.