19-03-2025
BAM Launches New Finance Program for Micro-Businesses
Raba – Morocco's central bank, Bank Al-Maghrib (BAM), has introduced a new program to support bank financing for micro-businesses. This new plan is set to offer participating banks refinancing at a preferential rate.
BAM Governor Abdellatif Jouahri made the announcement during a press conference on Tuesday, detailing that the program features a rate set 25 basis points below the key policy interest rate to improve credit access for micro-businesses to strengthen their contribution to job creation.
These businesses represent nearly 88% of Morocco's economic fabric, Jouahri explained , following the central bank's first quarterly meeting of 2025.
He also recalled that BAM, commercial banks, and Tamwilcom held a meeting on March 6 to examine measures that could facilitate micro-business financing.
The consultation addressed several focus areas, including improving banking procedures, application review processes, response times, and revisions to the Intelaka program.
The Governor further informed that a tripartite meeting is scheduled for the first half of the year with the General Confederation of Moroccan Enterprises (CGEM), sector federations, and banks.
Read also: Abdellatif Jouahri Named Africa's Central Banker of the Year 2024
This upcoming meeting is set to enhance the understanding of challenges that micro-businesses face and adapt support mechanisms accordingly. Similar consultations had taken place in 2016 and 2019 before being interrupted by the health crisis.
BAM's Council decided to set a 25 basis point reduction in its key interest rate to 2.25%, marking the second consecutive reduction and the third since last June.
This decision considers the projected fluctuation of inflation to levels aligned with price stability objectives and is also set to strengthen the needed support for economic activity and employment.
The initiative reflects Morocco's ongoing efforts to bolster its small business, which form the backbone of the national economy, but often struggle with access to formal banking services and credit opportunities. Tags: Bank Al-MaghribeconomyMicro-businesses
