Morocco is shielded from the full effect of the global credit crisis
Morocco’s banks vowed to keep credits flowing to maintain the country’s economic growth in the midst of global financial crisis, according to reports.
Morocco’s Banks Professional Grouping (GPBM) has said that banks in morocco continue to finance big infrastructure projects, small and medium enterprises, productive investment projects, real estate and social housing.
Spokesperson of the association said that Morocco’s banks are not fearful of lending because they are optimistic on the country’s economic growth. GPBM re-affirms that the banking sector is in sync with the needs of the country’s development while tracking its input to promote growth and develop the economy’s attractiveness to lure more investment opportunities each year.
Morocco has been the pioneer in the area of financial sector reforms in Africa - which it began to significantly implement from the mid 1980s. Finance Minister Salaheddine Mezouar in the business daily L’Economiste said that Moroccan financial sector does not hold securities or loans in financial institutions or international investment funds affected by subprimes. Mezouar added that real estate loans in Morocco are mainly fixed interest rate loans with standardized and predictable conditions.
Government Spokesperson and Communication minister, Khalid Naciri has said that the financial situation of Moroccan banking institutions has significantly improved in recent years, thanks mainly to the elimination of credit controls, deregulation of interest rates, easing of entry into the financial services industry, increased prudential regulation, development of capital markets and supervision and liberalization of international capital flows.
This comes after the news that Central Bank Governor Abdellatif Jouahri said a more flexible dirham, originally planned for 2010 could be brought forward in this March itself despite the U.S. subprime mortgage crisis.
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