The European Bank for Reconstruction and Development (EBRD) approved a new loan of 250 Mln Euros to Morocco from 2023 to 2025 to rebuild its economy in the Atlas Mountain areas affected by the Sept. 8 earthquake, EBRD announced in a news release on Wednesday.
The strategy consists of two crucial stages that are intended to encourage inclusive regional growth and sustained recovery.
The initial phase, which runs from 2023 to 2025, will concentrate on seismic relief, maintaining livelihoods, and beginning reconstruction. Loans to impacted individuals, as well as micro, small-, and medium-sized companies (MSMEs), will be made available through partner financial and microfinance institutions.
There will be a major emphasis on the economic inclusion of women, offering financial advice and rehabilitation funds for MSMEs, and providing liquidity support for infrastructure and municipalities as needed.
The EBRD will concentrate on ensuring better access for MSMEs to finance, supporting the revitalization and resilience of the tourism sector and agricultural value chains, improving key municipal and regional infrastructure, and promoting economic diversification and human capital development through targeted investments and advisory services to the private sector.
The loan is aimed to mitigate the effects of the earthquake on livelihoods, human capital, and infrastructure through a tailored blend of financing, grant support, and technical assistance, said Heike Harmgart, Managing Director of the EBRD for the Southern and Eastern Mediterranean (SEMED) region.
The government’s longer-term development and inclusive strategy for the areas, including infrastructure projects and expanded economic possibilities for the local people, will be supported by the EBRD in the next phase.
This multifaceted response will be carried out in cooperation with other international partners and funders, and it will be closely coordinated with the Moroccan government and other pertinent public and private sector players.