EBRD supports three Moroccan enterprises with €300 Million loans

The European Bank for Reconstruction and Development (EBRD) has mobilized €300 million worth of loans for the benefit of three public enterprises in Morocco.

The National Airports Office (ONDA), the National Company of Highways of Morocco (ADM), and the National Office for Electricity and Drinking Water (ONEE) are set to benefit from the loans destined to help them recover from the COVID-19 crisis.

This cooperation action with EBRD is part of the efforts undertaken by the Ministry of Economy & Finance to support Public Enterprises and Establishments to counter the effects of Covid-19 crisis, in particular through the mobilization of funding for their cash flow needs, said a joint press release by the ministry and the EBRD.

The financial support also includes technical assistance to help the three entities modernize their governance.

Minister of Economy and Finance Mohamed Benchaâboun signed on Tuesday the three guarantee agreements relating to the loans.

During a video conference, Benchaaboun and EBRD Vice-President Alain Pilloux hailed the quality of cooperation relations between Morocco and the European banking institution.

The Moroccan minister also called on the EBRD to expand its support for other Public Enterprises and Establishments affected by the pandemic and to strengthen the Bank’s action in favor of the private sector to back up recovery.
Pilloux said the EBRD is happy “to provide liquidity to public companies to support Morocco during this unprecedented crisis.”

The vice-president added that Morocco’s economic reforms “should contribute in the future to strengthening the resilience of public enterprises and guarantee the continuity of quality services to the Moroccan population.”
European banking institutions have ramped up support for Morocco amid the COVID-19 crisis.

Earlier in August, the EBRD concluded a loan to support Morocco’s small businesses, allocating €40 million to the Moroccan branch of CaixaBank. A week earlier, EBRD approved a €40 million loan package to Moroccan bank “Crédit Immobilier et Hôtelier” to enable it enhance the resilience of local trade and businesses affected by covid-19 pandemic.

In July, EBRD announced a $100 million loan to Moroccan “Banque Centrale Populaire (BCP). The funding was also destined to help SMEs affected by the coronavirus pandemic.