AfDB approves €100-million budget support loan for financial sector development in Morocco
Efforts by the Kingdom of Morocco to deepen its financial sector received a big boost on Wednesday, October 1, 2014 in Abidjan, following the approval of a €100-million budget support loan to finance the third phase of the government’s Financial Sector Development Support Programme (PADESFI-III)
This programme, to be implemented in 12 months to December 31, 2015, will consolidate two previous phases of the programme implemented in 2009 and 2011, respectively.
PADESFI-III will focus on creating requisite conditions for inclusive economic growth.
It is intended to consolidate and deepen reforms initiated under PADESFI-I and PADESFI-II, by focusing on four main thrusts: (i) improvement of people’s access to financial services; (ii) improvement of access to financing for businesses; (iii) strengthening financial sector governance mechanism; and (iv) deepening capital markets.
PADESFI-III is based on the strategic orientations of the government’s medium-term development programme. Its design has taken into account the principles of the Paris Declaration on Aid Effectiveness and those of good practice principles for the application of conditionality. It also complies with the Bank’s strategy for Morocco. The programme is expected to benefit all Moroccans by improving conditions for sustainable and inclusive economic growth that would positively impact their living conditions.
These reforms are expected to improve access to financial services to the private sector, especially small businesses and microcredit facilities in which young people and women flourish. The expansion of bank networks and services across the Kingdom will also create jobs.
One of PADESFI-III’s objectives is to promote women’s entrepreneurship, notably through the special guarantee product known as ILAYKI (for you).
The Bank’s active portfolio in Morocco comprises 33 operations for a net commitment of approximately €2.05 billion (1.78 billion Units of Account). Loans total €2.04 billion (1.77 billion Units of Account) representing 99.7% of the Bank’s aggregate commitment and covering 15 projects and programmes, with an average amount per operation of roughly €127.80 million (111 million Units of Account).