Any loan granted to help people with limited economic resources to set up and develop their own production or service activity, with the aim of ensuring their economic viability. The microcredit amount must not exceed MD 50,000.
Conditions and terms for entities providing microcredit
Microcredit associations must be authorized with a decree from the Minister of Finance, issued after consultation with the Consultative Council for Microcredit. The decree must be published in the Official Bulletin.
Authorization to provide microcredit is granted to any association meeting the following requirements:
The association statuses must state in particular that:
Its sole purpose is to grant people with limited economic resources loans used to:
Set up and develop their own production or service activity with the aim of ensuring their economic viability.
Acquire, build or improve their home.
Supply their home with electricity or drinking water.
It may assist its clients in all operations related to microcredit, notably in terms of training, counselling and technical assistance.
Granting microcredit should not involve any form of discrimination.
It does not engage in any political or union activity.
In case of dissolution for whatever reason, the net liquidation proceeds must go to the state to be channelled into entities providing the same service, after consultation with the Consultative Council for Microcredit.
Proposed financial and human resources must be sufficient to carry out the association’s activity.
The association’s development plan, in terms of resources, location, credit allocation, and provision for both urban and rural areas, must comply with national programmes for the social and economic insertion of people with limited economic resources.
Financial forecasts for the association must show that it can be viable within 5 years of being authorized.
In support of authorization applications, associations must provide, besides documents regarding items and terms mentioned above, the submission of receipt concerning the deposit required under Article 5 of Dahir-law nº 1-58-376 dated 3rd Joumada 1378 (15th November 1958).
The applicant will be notified by the Ministry of Finance, within 6 months of submitting the application, of whether authorization to provide microcredit has been granted or refused,
Note that no person shall be entitled to act as founder or member of the management of a microcredit association, nor to manage or represent, in whatever capacity, a microcredit association, if:
he or she is not of good character
he or she was irrevocably convicted for criminal offenses as laid out in Articles 334 to 391 and 505 to 574 of the criminal code
he or she was irrevocably sentenced for breach of currency exchange legislation
he or she was involved in judicial liquidation
he or she was tried under foreign jurisdiction and duly sentenced for any of the above offenses
Microcredit associations must inform the general public of terms and conditions applicable to microcredit operations, notably with regard to interest rates, commissions and fees charged to microcredit beneficiaries. This information must be posted in their premises.
