MOROCCO. BAM endorses its monetary easing policy

After the adoption, on March 29, of a set of new monetary and prudential policy measures to support access to bank credit for the benefit of both households and businesses, in order to cope with the impacts of the pandemic of the new coronavirus (covid-19), the central bank has just published a new Wali decision from Bank Al-Maghrib and two circulars allowing it to operationalize its new policy in this area.

The Wali decision, dated April 15, came into force today. It brings together several texts and replaces a decision dated April 11, 2011.

This regulatory refresh makes it possible to support the system announced at the end of March and which aims to triple the refinancing capacity of banks with Bank Al-Maghrib (BAM).

Thus, the central bank offers the possibility of recourse by the banks to all the refinancing instruments available in dirhams and in foreign currencies, the extension to a very wide range of securities and effects accepted by BAM in return for the refinancing granted to the banks. and extending the duration of these refinancings.

In a circular dated April 15, the central bank specifies that banks can now use the facilities of Bank Al-Maghrib on a daily basis. The same circular fixes the new universe of collateral, greatly expanded, accepted by the Central Bank.

Strengthening the program for MSMEs

A second circular specifies the strengthening of the specific refinancing program for the benefit of very small businesses, small and medium-sized enterprises (TPME). BAM wants, in addition to investment loans, to allow them to have access to operating loans while increasing the frequency of their refinancing.

From now on, the banks participating in this program can refinance themselves monthly with the central bank for an amount equal to the financing disbursed the previous month. Bank Al-Maghrib locks that said the risk of abuse by allowing itself to launch audits if necessary, at the expense of the counterparty, to examine certain information communicated.

The two circulars and the new Wali decision of Bank Al-Maghrib came into force today Wednesday April 15.

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