The European Bank for Reconstruction and Development (EBRD) mobilized €300 million worth of loans to three public enterprises in Morocco to help them recover from the COVID-19 crisis.
The enterprises set to benefit from the loan are the National Company of Highways of Morocco (ADM), the National Airports Office (ONDA) and the National Office for Electricity and Drinking Water (ONEE).
According to a joint press release from EBRD and the Ministry of Economy and Finance, the cooperation with EBRDD is part of efforts undertaken by the ministry to support Public Enterprises and Establishments to counter the impacts of Covid-19 crisis. The ministry is focusing on mobilizing funds for the cash for needs.
The funds will also support technical assistance to help the three entities modernize their governance.
The €300 million loans were signed Morocco’s minister of Economy and Finance Mohamed Benchaâboun on behalf of the three entities.
Benchaaboun and EBRD Vice-President Alain Pilloux praised the quality of cooperation relations between Morocco and EBRD.
The minister also asked the bank to expand its support for other Public Enterprises and Establishments affected by the pandemic and to strengthen the Bank’s action in favour of the private sector to back up recovery.
On his part, Pilloux said the EBRD is delighted “to provide liquidity to public companies to support Morocco during this unprecedented crisis.”
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.” He added
The bank has continued to support Moroccan banks, for instance, in August the bank concluded a loan to support Morocco’s small businesses, allocating €40 million to the Moroccan branch of CaixaBank.
It also 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 the pandemic.
EBRD announced a $100 million loan to Moroccan “Banque Centrale Populaire (BCP)in July. This funding was meant to support SMEs affected by the coronavirus pandemic.