Morocco’s GDP Could Plummet 6.2% as Unpaid Loans and COVID-19 Threaten Economy

The recovery scenario is about to be compromised by the hypothesis of the Moroccan center of conjuncture which now forecasts a 6.2% drop in GDP. In some partner countries, a second wave of contamination is taking shape. This could prolong the exit from the crisis of certain sectors. Likewise, the health situation at the national level is worrying. According to the CGEM, the government will have to make extreme decisions but a general re-containment would be catastrophic. For an analyst, the support measures are not up to the demands, but they have the merit of existing. Indeed, the banks have already released 40 billion DH of state-guaranteed loans, including 22.4 billion for the relaunch of the economy. However, despite the experience drawn from Damane Oxygen which made it possible to quickly deploy the loans, obstacles still persist, writes l’Economiste.

Several companies have seen their requests rejected and for good reason, some did not meet the requirements related to the non-distribution of dividends and their debt / gross operating surplus ratio which should be less than or equal to 7 for the company to be eligible for recovery loans.

The vice-president general of the CGEM during the economic return of the employers’ organization revealed that debt cannot be an appropriate means to help companies, hence the proposal of sectoral funds to support companies in equity. He nevertheless obtained concessions on the debt / EBE ratio during the meeting with the GPBM and the CCG on August 7. The president of the tax and customs commission at the CGEM affirms to have obtained that there be a dynamic reading of the EBE and the debt / EBE ratio for the industrial and hotel companies. The same meeting should make it possible to unlock the blockages related to the processing times of the files.

It should be noted that the credit quality of borrowers has deteriorated a lot due to the economic crisis linked to the coronavirus. Despite the support measures, business failures are expected to rise sharply. The banking system will certainly experience disruptions due to the inevitable rise in claims. A rapid rebound in economic activity will then be needed to avoid disaster, according to the newspaper.