Highlights

Holding of the 33rd meeting of the Board of Directors of the Central Guarantee Fund

20/02/2019
Holding of the 33rd meeting of the Board of Directors of the Central Guarantee Fund

Mr. Mohamed BENCHAABOUN, Minister of Economy and Finance, chaired the 33rd meeting of the Central Guarantee Fund’s (CCG) Board of Directors, Wednesday, February 20th in Rabat. This meeting focused mainly on reviewing the activity of the 2018 financial year and establishing the objectives for the financial year 2019 in addition to the steps to achieve them.

At the opening of this event, the Minister emphasized the High Royal Guidelines concerning Morocco’s new development model which, in its economic dimension, should be able to generate more economic and social inclusion and achieve higher jobs and wealth creation.

While stresseing the important achievements and progress made by Morocco regarding economic development, as can be seen by the renewed confidence of its partners and international investors, Mr. BENCHAABOUN also recalled the many challenges our country faces in terms of competitiveness, attractiveness and growth.

The Minister reasserted the commitment and the mobilization of the Government of His Majesty the King to create an efficient economic dynamic. He also pointed out that a set of measures to boost investment and improve access to finance for micro-enterprises and SMEs will be adopted pursuant to the Finance Act for the year 2019.

Those measures include : the increase in the ceiling of the credits granted by the Microcredit Associations (AMC), thus increasing from 50.000 to 150.000 DH. Therefore, in order to enhance the attractiveness of this step, especially as regards reducing the interest rate of micro-credit, the Minister stated that the CCG will set up funding lines for AMCs, combined to the resources of these associations to grant formalized micro-enterprises loans on easy terms

In addition, the Minister stated the simplification of the CCG's guarantee offer, which will be improved, consolidated and simplified in the interests of MSMEs. Thus, the new guarantee offer makes it possible to tackle two major financing problems facing SMEs, namely investment and the requirements for working capital.

With a view to accompany the development of SMEs, the CCG will double its guarantee ceilings for industrial and export companies as well as those active in the field of clean energy. Provided that the beneficiary companies, he specified, have effective governance.

As part of the measures to boost investment, the Minister noted that the focus will be to address the problem of undercapitalization of industrial and exporting SMEs through the implementation of a financing solution of the CCG through a subordinated loan on favorable terms.

Mr. BENCHAABOUN welcomed the performance of the CCG in recent years, stating that the extension of the CCG's main areas of operation and the review of its product range indicate a major change in its activity.

For this reason, he encouraged all the CCG's partners (banks, finance companies, associations, labelled players and investment funds) to increase efforts to boost the financing of businesses and startups. He added that companies must, on the other hand, take advantage of these opportunities and become more involved in productive investment and in competitive modernization and innovation.

Invited to present the items on the agenda, Mr. Hicham ZANATI SERGHINI, Director General of the CCG, made a presentation on the outcomes of the year 2018. He stressed the positive trend achieved. He presented the performance of the global activity which generated nearly 26.6 billion DH of guaranteed and granted loans, an annual increase of 10%.

Mr. SERGHINI also specified that during this period, the activity in favor of MSME continued to grow, reaching a total of 20.5 billion DH of guaranteed credits, that is an increase of 15% compared to the year 2017, for nearly 10. 800 funding proposals.

He also drew attention to the achievements in the first year of the activity of the offer for innovation planned under the Inno Invest Fund. This device allowed to finance 59 startups, for a total of 41 million DH.

On its side, the activity devoted to individuals knew the same levels of activity as the previous year, involving a guaranteed credit budget of more than 5 billion DH, for more than 22,000 beneficiaries.

Subsequently, the Board, which welcomed these positive developments, approved the production targets for the financial year 2019, the institution's budget for that year and the configuration of the new product range.