Amazing! 9,000 COVID-19 Impacted Morocco-based Firms Gets MAD 3.7 Billion Loans

According to Mohammed Benchaaboun, Morocco’s minister of finance and economy, the country’s Economic Watch Committee has adopted several measures that favor businesses as the COVID-19 pandemic lingers. Considered companies are the micro, small and medium-sized companies, including those in the liberal professions. 

While providing a clear response at the House of Representatives, Mohammed Benchaaboun revealed that the methods involve the postponement of the repayment of maturities and leasings to June 30, 2020. Another measure would include the provision of an additional line of credit, which will come from the CCG – Central Guarantee Fund. The line of credit will be available to firms that are experiencing liquidity deterioration caused by a reduction in activity posed by the COVID-19 pandemic, particularly for firms in the real estate sector. 

According to the minister, the postponed maturities and leasings are approximately MAD 33 billion or $3.3 billion.

The minister also gave a clear statistics of how the loan disbursement has been since inception. He said 310,000 requests have been received, processed, and approved, with only 5 percent rejected thus far, while the remaining applications are still being reviewed for possible approval or rejection. 

While speaking, the minister also made clear that the state had granted 9,000 loans. However, the loans were made available to companies whose turnover is below MAD 500 million or $50 million. The credits were also given through the CCG’s Damane Oxygene and amounted to the tune of MAD 3.7 billion or $370 million. 

Another wise move was the minister revealing that companies whose turnover, particularly in the 2019 financial year, was lower than MAD 20 million or $2 million, may also postpone their tax filling statements until June 30, 2020. Firms may delay the submission of income statements from individuals. And this will take place from the end of April to June 30. 

Furthermore, the measures taken don’t include allowances paid to workers who registered with CNSS from the income tax, within a 50 percent limit of the average monthly net salary of the said individuals.  

The minister also declared that self-employed persons whose businesses were affected by the COVID-19 pandemic could also access interest-free loans. The loan, however, will be up to the tune of $1500 or MAD 15,000.