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Funding: Congestion at the CCG Box Office

Without the support of the Central Guarantee Fund (CCG), more than 5,600 SMEs would probably not have been able to obtain financing from the banks. Firms receiving CCG support in the first quarter are three times larger compared to the first three months of 2018.

Overwhelmed by requests, the fund itself needs additional resources to face its success. An increase in resources is planned. In any case, that is what the Minister of Finance said recently.

In the first quarter, the companies mobilized MAD 5.5 billion of loans thanks to the guarantees of the fund (MAD 3 billion). All sub-funds are growing strongly. However, the breakdown by instrument shows the mindset of business leaders who are concerned about the daily operation of their business and the need to find solutions to make ends meet.

More than 72% of the credit volume, or 3.96 billion dirhams were directed towards the financing of the operating needs. Even for these short-maturity credits, the collateral requirements appear heavy. They represent 54% of the banks’ liabilities.

This situation raises at least two comments. Either banks are always cautious to SMEs in the absence of a detailed knowledge of this clientele, or the governance of these companies remains a real problem. In any case, these two elements contribute to the lack of confidence in the bank/company relationship.

The support mechanism for financing the creation, development and restructuring of SMEs (Damane Istitmar) has raised MAD 740 million from the banking sector. This capital generated an investment of MAD 1.15 billion, a lever of 1.5%. Financing raised for VSEs thanks to Damane Express totaled 533 million dirhams in the first three months of the year.

Beyond businesses, the CCG provides a guarantee for individuals. Nearly 6,200 benefited in the first quarter and were able to borrow 1.2 billion dirhams. The deposit of the Fund amounts to MAD 883 million.

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