Morocco Launches Dynamic BAM Initiative to Boost VSE Financing Support and Fuel Growth

In a groundbreaking move to enhance economic growth, Bank Al-Maghrib (BAM) has unveiled a new support program designed specifically for very small enterprises (VSEs) in Morocco. This initiative, announced by BAM’s Wali, Abdellatif Jouahri, on March 18, offers participating banks refinancing at a preferential rate, significantly improving access to credit for VSEs. With these enterprises constituting nearly 88% of the national economy, the program aims not only to bolster financial support but also to stimulate job creation across Morocco. Dive into our detailed analysis of how BAM’s refinancing measures are set to transform VSE financing support in Morocco.

Overview of BAM’s New Support Program

Bank Al-Maghrib (BAM) has introduced a new program to enhance financing for very small enterprises (VSEs) in Morocco. This initiative allows participating banks to access refinancing at a preferential rate, specifically set at 25 basis points below the current key rate.

The program is designed to improve VSEs’ access to credit, facilitating greater contributions to job creation, as VSEs account for nearly 88% of Morocco’s economic structure.

Impact on VSEs and Job Creation

The new BAM initiative aims to strengthen the role of VSEs in the Moroccan economy by improving their access to financial resources. This is essential for enabling these small businesses to grow and expand.

By fostering an environment where VSEs can secure credit more easily, BAM anticipates a boost in job creation, addressing pressing employment needs within the country.

Consultative Meetings to Enhance VSE Financing

On March 6, BAM organized a meeting with banks and Tamwilcom to discuss strategies for facilitating VSE financing. This dialogue allowed for the examination of banking procedures and application reviews.

Further discussions will continue through a planned tripartite meeting involving CGEM and sectoral federations to assess challenges faced by VSEs and adapt support measures accordingly.

Recent Key Rate Adjustments by BAM

In light of economic conditions, the BAM Council has decided to reduce the key rate by 25 basis points to 2.25%. This marks the second consecutive reduction aimed at supporting economic activity.

This strategic adjustment takes inflation considerations into account, aiming to align with price stability goals while providing ongoing support for employment and economic growth.

Historical Context of VSE Financing Initiatives

Consultations surrounding VSE financing have taken place in the past, notably in 2016 and 2019, reflecting BAM’s ongoing commitment to support this vital sector.

These past meetings were interrupted due to the health crisis, but efforts are being renewed to ensure VSEs receive the necessary assistance to thrive in the current economic landscape.

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