Covid 19: New Measures from Bank Al-Maghrib

Bank Al-Maghrib (BAM) announced, on Sunday, the adoption 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).

This package of measures will triple banks’ refinancing capacity with Bank Al-Maghrib, the central bank said in a statement. Thus, Bank Al-Maghrib offers the possibility of banks’ recourse to all refinancing instruments available in Dirham and in foreign currencies, the extension to a very wide range of securities and bills accepted by the central bank in return for refinancing granted to banks and the extension of the duration of such refinancing.

It is also about the reinforcement of its specific refinancing program for the benefit of very small enterprises and small and medium-sized enterprises (SMEs) by operating credits in addition to investment credits and by increasing the frequency of their refinancing, says the press release.

Bank Al-Maghrib is also taking measures to support credit institutions on the prudential plan covering liquidity, capital and loan provisioning requirements in order to strengthen the capacity of these institutions to support households and businesses in these exceptional circumstances.

Stressing that this pandemic is guaranteed to have a major impact on the global economy with a high degree of uncertainty surrounding the extent and duration of its effects on the majority of sectors at the national level, the central bank states that it will continue to closely monitor the implications of the health crisis on the Moroccan economy and the financial system and would, if necessary, take the necessary initiatives to deal with it.

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