Morocco: CCG launches new guarantee instrument to support young entrepreneurs
The Central Guarantee Fund (Caisse centrale de garantie - CCG) announced last Tuesday (3 June) the launch of a guarantee covering loans of honour, designed to support young entrepreneurs in Morocco.The Central Guarantee Fund (Caisse centrale de garantie - CCG) announced last Tuesday (3 June) the launch of a guarantee covering loans of honour, designed to support young entrepreneurs in Morocco.
"Mouwakaba" can guarantee up to 70 percent of unsecured
to a maximum of DH300,000 (€26,700), explained the CCG.
It added that by reducing the risk taken by the associations, the institution wishes to support and strengthen the role of the voluntary sector to fund more entrepreneurs, newspaper Liberation reports.
Loans of honour, with a zero percent interest rate, are a source of equity financing for entrepreneurs and small and medium-sized enterprises (SMEs) and are issued by organisations such as NGOs specialised in project support. They are awarded
the medium and long term, without collateral.
This announcement comes a month after the World Bank approved a new programme to support Morocco,
which includes a $300 million
to be allocated to the development of the capital market and pension reforms, as well as policies to facilitate
financing for SMEs.