Morocco’s central bank asks banks to freeze distributing dividends

Morocco’s Central Bank, known as Bank Al Maghrib, asked banks not to pay 2019 dividends to shareholders in order to boost their capacity to dealing with the coronavirus repercussions.

This recommendation comes after a series of measures including boosting three-fold bank’s refinancing capacity and measures to make loans more accessible for households and companies, the central bank said.

“It is important for lenders to maintain enough proper funds in order to deal with the consequences of the crisis and preserve their capacity to finance in these exceptional circumstances,” it said in a statement.

Both Moody’s and Fitch shed light in their recent assessments on the challenges facing the Moroccan banking sector downgrading Morocco’s prospects from stable to negative.

Moroccan banks have contributed to the anti-covid fund and have been asked to delay loan payments owed by households and businesses.