Morocco: New product launched to guarantee SME loans
The Central Guarantee Fund (CCG) of Morocco has just launched a new product aiming to guarantee loans to Moroccan companies, especially small and medium enterprises.The Central Guarantee Fund (CCG) of Morocco has just launched a new product aiming to guarantee loans to Moroccan companies, especially small and medium enterprises (SMEs)
Damane Exploitation only applies to credits for financing the revolving fund requirement of companies, according to the CCG.
The credits that can benefit from the Damane Exploitation guarantee are granted directly by banks to SMEs looking to develop.
For this guarantee mechanism, the CCG covers 60 percent of credits with a guarantee ceiling of 10 million Dirham (€899.000), La Nouvelle Tribune reports.
SMEs represent 95 percent of Moroccan companies, however only 24 percent of the total amount of loans across the countries are granted to such firms.
These companies are having difficulties to access credit, mainly because they often are not in a position to provide real guarantees.
This initiative should therefore help improving their access to finance through commercial banks.