Highlights

The Economic Monitoring Committee holds it 10th meeting : 05/10/2020

The Economic Monitoring Committee holds it 10th meeting

The Economic Monitoring Committee (CVE) held on Monday, October 5 2020, its tenth working meeting. This meeting tackled the measures deployed under the implementation of the Pact for Economic Recovery and Employment signed in CVE 9th meeting, and the examination of the advisability of extending these measures to certain sectors that have been strongly impacted by the Covid-19.

The committee perused the evolution of Morocco's economic and financial situation, based on the latest economic indicators available. This examination suggests a strong attenuation the recessive effects induced by the Covid-19 pandemic during the third quarter (-4.8%) compared to the percentage observed during the second quarter (-14.9%). This gradual improvement, which could continue over the rest of the year, remains however faced with high uncertainties, fueled by the unpredictability of the epidemiological situation and the risks weighing on the recovery of the economic situation among Morocco's main partners".

With regard to support measures for the productive sectors, the CVE observes "with satisfaction" the momentum that has developed since the implementation of guarantee products, in this case "Damane Relance" and "Relance TPE".

Capitalizing on this dynamic and with the view to adapt the guarantee offer to the specificities of certain important and structuring sectors, like real-estate development sector, the CVE decided to set up a new variant of the "Damane Relance" product called "Damane Relance Promotion Immobilière".

The new guarantee product will thus make it possible to support real estate development companies severely affected by the Covid-19 crisis and meeting the eligibility criteria defined for this purpose[1], by offering them medium and long-term loan guarantees intended to cover the financing needs for the completion of their real estate projects

the loan guaranteed by this new product, capped at MAD 50 million per project, is open both to projects that have already benefited from a real-estate development loan and to those that have only had recourse to self-financing.

In this sense, and considering the adverse effects of the Covid-19 crisis on certain vulnerable sectors of activity, two program contracts have been concluded, namely:

  • Program-contract for the revival of events and catering sector. This contract covers caterers, rental of technical equipment related to events (sound, light, video, etc.), rental of spaces dedicated to events (halls, marquees, etc.), rental of furniture dedicated to events and service providers for events.

The program-contract was signed by the following State representatives:

  • The Ministry of Economy, Finance and Administrative Reform;
  • The Ministry of Industry, Trade, Green and Digital Economy
  • The Ministry of Labor and Professional Integration

    and from the private sector by :
  • The General Confederation of Moroccan Enterprises (CGEM);
  • The Professional Group of Moroccan Banks (GPBM);
  • The Federation of Moroccan Chambers of Commerce, Industry and Services

 

  • Program-contract for the revival of the sector of amusement parks and games. It covers companies operating in indoor play areas (skating rink, children's playgrounds, video and automatic games rooms), companies operating in open-air play areas (Skate-parks, Karting, mini-golf, archery, merry-go-rounds and water parks, tree climbing areas and circuits) as well as animal and zoological parks. The signatory parties to this program contract representing the State are:
  • The Ministry of Interior
  • The Ministry of Economy, Finance and Administration Reform;
  • The Ministry of Agriculture, Fisheries, Rural Development, Water and Forests;
  • The Ministry of Industry, Trade, Green and Digital Economy
  • The Ministry of Labor and Professional Integration

And from the private sector: the CGEM and GPBM.
 

Through a series of economic and financial support measures and other cross-cutting measures, these two program contracts aim to give impetus to activities in these two sectors and to preserve the fabric of the companies operating there and hence employment.

The steering of these two program contracts will be ensured by a monitoring committee, each made up of signatories representing the State and the private sector. In this sense periodic meetings over a two-month interval have been decided to ensure the effective implementation of the agreed measures and assess their contribution to the achievement of the expected results.


 

 

 

 

[1] Real estate development companies meeting the following criteria: Be governed by the Moroccan private law; Is not in receivership or compulsory liquidation; Does not have bank credit downgraded to "Compromise" as of 02/29/2020.

Are not eligible: Projects with expired or postponed Real-estate Development Loans before October 1, 2018; projects or real estate developers th