The World Bank will give Morocco around USD 350 million to initiate reforms in the local financial sector, reports a communiqué released on Tuesday. This loan would give small and medium companies a chance to benefit from a new set of financial recourses. It will also improve banking supervision and boost the development of the capital markets. In addition, small firms, and more generally the real economy, will ultimately have access to new financing solutions. In the long run, households and small businesses that currently have limited or no access to the formal financial system should see their financial situations improve. Low-income households will also benefit from the reforms financed by the new loan, the World Bank said, adding that improving access to finance for SMEs will create employment opportunities. The reforms will also enable women entrepreneures to access new sources of financing and introduce new electronic payment systems. Finally, this budget envelope will give the Central Bank of Morocco the means to monitor more closely the activity of the banks, in particular those that are part of large financial conglomerates. It will ensure the financial sustainability of the public service pension fund, extend the mechanisms of public guarantee of loans and help establish more performing frameworks of information on the solvency of new borrowers.
