The Board of Bank Al-Maghrib- BAM (Morocco’s Central Bank), convened on Tuesday, adopted a new set of measures aimed at mitigating the impact of the Covid-19 pandemic and supporting economic and employment recovery.
The Board decided, after the 25 basis point cut last March, to make a second reduction in the key rate by 50 basis points, bringing it down to 1.5%, and to liberate the reserve account in favour of the banks, according to a BAM statement published at the end of the second quarterly session of the Bank’s Board.
In the same vein, Bank Al-Maghrib has put in place specific measures to refinance bank credit to participatory banks and microcredit associations.
These new decisions, combined with the various easing measures already implemented, namely broadening the collateral eligible for its refinancing operations, strengthening its non-conventional programmes, and temporarily relaxing the prudential rules, should help, along with those taken by the Government, to mitigate the impact of the pandemic and support economic and employment recovery.
Considering the current special economic situation, the Bank will take greater care than in the past to ensure that its decisions are passed on to the real economy and will regularly review the situation with the highest banking system management, bearing in mind that it has already refined the framework of its refinancing operations to further favour banks that are making greater efforts in this regard.
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