MOROCCO SME T&C GUARANTEE - BCP

Promoter – Financial Intermediary

BANQUE CENTRALE POPULAIRE

Location

• Morocco

Description

The operation consists in a risk-sharing facility (RSF) to Banque Centrale Populaire (BCP) in Morocco to facilitate lending to small and medium sized enterprises (SMEs) and MidCaps. The partial portfolio guarantee will be financed from the Neighbourhood Investment Facility (NIF) resources, currently Neighbourhood Investment Platform (NIP), under the Trade and Competitiveness Programme. The RSF complements a parallel operation (EIB Loan for SMEs and MidCaps 2017-0613) and will be supported by technical assistance financed under the same programme.

Additionality and Impact

The operation aims to address the Moroccan SMEs' difficulties to access finance, in particular given the challenges posed by the COVID-19 crisis and the global negative impact of the Russian invasion in Ukraine. The operation aims to enhance the access to finance for SMEs by providing a guarantee to cover a portfolio of loans to small businesses in Morocco in order to allow the financial intermediary to take more risk with respect to its SME lending activities. As SMEs play a vital role in Moroccan economy and make up the vast majority of firms in the country, the proposed operation would contribute to creating and safeguarding employment, including for young people, women and rural population, thanks to the good outreach of the financial intermediary to these underserved segments. The operation is an integral part of a financial package (including also a credit line and technical assistance) which would provide SMEs in Morocco with financial and non-financial services helping them to increase their competitiveness, value added, export potential and integration with the international markets. Thus, the guarantee would be in line with the priorities of the Association Agreement between the EU and Morocco, the European Neighbourhood Policy and the Joint Communication on the renewed partnership with the Southern Neighbourhood, which focus on achieve inclusive, resilient, sustainable and connected economies. 

Objectives

The operation will allow to de-risk a portfolio of SME loans that would otherwise be out of the risk appetite of Banque Centrale Populaire. Through the EIB guarantee, the bank will be able to offer more risky new products and/or to lend to client segments with perceived high risk.

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

EUR 8 million

Total cost (Approximate amount)

EUR 70 million

Environmental aspects

BCP has to take all required measures to ensure that the procedures, including procurement, carried out by the final beneficiaries comply with applicable EU and national legislation, the ElB's Environmental and Social Standards, as well as international treaties and conventions signed and ratified by or otherwise applicable and binding in the country.

Procurement

BCP has to take all required measures to ensure that any procurement procedure carried out by the final beneficiaries are in line with the EIB's Guide to Procurement.

Status

Signed - 19/10/2022