Abdellatif Jouahri, the Governor of Morocco’s Central Bank–Bank Al-Maghrib (BAM)–disclosed that the disbursements within the framework of the integrated entrepreneurship support and financing program “Intelaka”–translated to Start–have surpassed eight billion MAD. The announcement came in a press release following the first BAM Board meeting of this year, on Tuesday in Rabat.
The Intelaka initiative, introduced by the Moroccan government in February 2020, provides funds, assistance, and guidance to startups under two years of operation, and seeks to either initiate related projects or accelerate the growth of those already underway.
The program is reviewed on a monthly basis by the Monetary and Financial Committee, also headed by Jouahri, as he stated.
“Despite thousands of entrepreneurs benefiting from the program with nearly eight billion MAD in disbursed credits, the refusal rate remains as high as 40%,” the Governor revealed.
He reiterated the importance of support measures for beneficiaries, noting that the amount of funding has been doubled to ensure ideal assistance facilities as well as to address potential project holders’ concerns.
The Central Bank Head disclosed a current discussion regarding a report designed by the Audit Court on the program in question. Once completed, this report will be made available to stakeholders.
Addressing unpaid debts, Jouahri reaffirmed the critical nature of the situation, recalling a recent meeting with all parties, including the banking system, financing businesses, and key ministries. “We have taken everyone’s comments into account, to achieve a gradual finalization of the file,” he went on to say.
The BAM board decided on Tuesday to maintain a 3% benchmark interest rate, citing its current percentage rate as sufficient for controlling inflation, thereby expediting the return to price stability in the Kingdom.