MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Likely to Loan Morocco’s Banque Centrale Populaire (BCP), Affiliates $133m for On-lending to Micro-, Small, Medium-Sized Enterprises (MSMEs)

The European Bank for Reconstruction and Development (EBRD), a multilateral institution headquartered in London, is considering disbursing a loan of up to EUR 100 million (USD 133 million) to Banque Centrale Populaire, a member of the Moroccan mutual banking group Groupe Banque Centrale Populaire (GBCP), as well as to 10 affiliated “regional popular banks”[1]. If approved, the loan is expected to be used for on-lending to micro-, small and medium-sized enterprises (MSMEs) operating in Morocco.

As of December 31, 2013, GBCP reported consolidated assets of MAD 290.3 billion (USD 35 billion), customer deposits of MAD 210 billion (USD 25 billion) and advances to customers of MAD 199.8 billion (USD 24 billion). BCP is a member of GBCP that offers a range of retail financial services and coordinates group-level financial policy.

EBRD provides loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs) in Eastern Europe, Central Asia and North Africa. In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects across 34 countries.

By Alíz Crowley, Research Associate

About Groupe Banque Centrale Populaire (GBCP)

Headquartered in Casablanca, Morocco, Groupe Banque Centrale Populaire (GBCP) is a financial services group. As of December 31, 2013, GBCP reported consolidated assets of MAD 290.3 billion (USD 35 billion), customer deposits of MAD 210 billion (USD 25 billion) and advances to customers of MAD 199.8 billion (USD 24 billion). As of 2013, GBCP had 1,250 branches, 630 distribution points and 1,449 automated teller machines (ATMs) in Morocco. Banque Centrale Populaire (BCP) is a member of GBCP that offers a range of retail financial services and coordinates group-level financial policy. BCP has an international presence in Belize, France and in the United Kingdom. BCP owns a range of financial services subsidiaries including Attawfiq Micro-Finance, a nonprofit microfinance institution (MFI) based in Casablanca. Additional financial information on BCP is available in French on GBCP’s website.

About European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London, England. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 64 countries as well as the European Investment Bank and the European Union as of 2014. It aims to finance operations that are both commercially viable and assist development in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects across 34 countries.

Sources and Additional Resources

[1] EBRD, BCP Medium-term MSME Credit Line

[2] Groupe Banque Centrale Populaire (GBCP), Financial Communication at 31 December 2013

MicroCapital, August 5, 2014, European Bank for Reconstruction and Development (EBRD) Loans $8m to Mongolia’s Khan Bank for On-Lending to Support Value Chains That Include Micro-, Small, Medium-Sized Enterprises (MSMEs)

MicroCapital, July 24, 2014, European Bank for Reconstruction and Development (EBRD) Promoting External Advice for Small and Medium-Sized Enterprises (SMEs) in Kyrgyzstan

MicroCapital, February 6, 2014, International Finance Corporation (IFC) Loans $20m to Attawfiq Micro-Finance for Microlending in Morocco

MicroCapital Universe Profile: Groupe Banque Centrale Populaire (GBCP)

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD)

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