Financial Support Fund to small and medium-sized enterprises: 1.55 billion DH matched with bank loans of 1.1 billion DH for 245 firms in difficulty : 08/05/2016

Financial Support Fund to small and medium-sized enterprises:  1.55 billion DH matched with bank loans of 1.1 billion DH for 245 firms in difficulty

The "Financial Support Fund to small and medium-sized enterprises (TPME)" intended to co-finance with banks the financial restructuring of businesses considered viable but experiencing temporary difficulties, has benefited from its effective launch in October 2014 and up to March 31st 2016, 245 businesses for an overall budget of 1.55 billion dirhams matched with bank loans of about 1.1 billion DH. The fund of 3.6 billion dirhams and managed by the (CCG) aims to strengthen and maintain the productive activities of micro-businesses, particularly exporting companies and those operating in the industrial sector. It should be noted that the share of the (TPME) benefiting from the Fund is 95% of all enterprises and 83% of the volume of the appropriations. 

Moreover, it should be noted that the sectors of industry and construction account for 71% of the Fund's portfolio. Every local benefited from the Fund’s Financial Support with the dominance of major banks. This enabled to maintain financial support for beneficiaries (TPME) as well as productive activities and employment. This funding mechanism helped to preserve the survival and the stability of 245 businesses with 24,610 employees and generating a turnover of over 12.5 billion dirhams. All regions of Morocco benefited from the Fund‘s Financial Support to (TPME), headed by the Casablanca-Settat region which benefits from 49% of the portfolio. It should be noted that five regions Casablanca-Settat, Kenitra-Rabat-Salé, Marrakech-Safi, Souss-Massa-Meknes and Fez represent 87% of all beneficiary companies.

Main difficulties of the beneficiary businesses of the Fund:

Of the 245 companies receiving support from the Fund, the main difficulties identified are related in particular to:

  • The extension of customers payment terms
  • The accumulated arrears of the CNSS and CIMR Funds
  • The loss of partners and / or major clients

Payment failure of one or more clients.

  • Allocation of Fund resources and the bank’s share:
  • appropriations granted by the " TPME Financial Support Fund " were used primarily to:
  • settle arr​ears to suppliers (70% of the Fund appropriations)
  • fund working capital needs and other particular social and fiscal debts (30% of the Fund appropriations).

As for the share of the bank in joint credits, it primarily served the consolidation of bank debts related to medium and long term loans or additional requirements with regard to operating loans.

It should be remembered that the “TPME financial support Fund " was set up in July 2014 thanks to the efforts of Bank Al-Maghrib, the (GPBM) and the Central Guarantee Fund (CCG) to reinforce the resilience of Very Small, Small and Medium- sized Enterprises (TPME) and strengthen their capacity to contribute to economic growth.

The Fund’s assistance consists of a subordinated loan of up to 50 million dirhams, within the framework of a joint credit involving also the bank’s share.

This joint credit, repayable over a maximum period of 10 years is granted at a fixed rate equal to the weighted average rate (TMP) of issuing treasury bonds to 5 years for the Fund’s share. As for the banking share, the rate is freely negotiable without exceeding the above rate plus 150 basis points. Today, the (TMP) treasury bonds to 5 years is at 3.16%.

The Fund primarily targets the micro-businesses whose turnover does not exceed 175 million dirhams. However, the (ETI) "middle-sized Companies" may, exceptionally, benefit from the Fund’s assistance.

In order to benefit from this Fund’s assistance, companies must apply directly to their banks that ensure the study and presentation of the financing application. Only files approved by the bank, will then be examined by the (CCG) as part of a Co-financing Committee.