MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Assist Central Bank of Morocco with Credit Information Sharing Regulations

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, recently announced that it will assist the Central Bank of Morocco (CBM), also known as Bank Al-Maghrib, with the development of laws and regulations regarding credit information sharing among lenders. IFC will also assist CBM with developing guidelines for the supervision of the country’s financial sector.

The new legislation is intended to meet international standards and help financial institutions manage their lending risks by sharing information related to borrowers’ credit history. By promoting lending to micro-, small and medium-sized enterprises (MSMEs), IFC expects that the legislation will boost the economy of Morocco.

According to Ms Joumana Cobein, IFC’s Country Manager in Morocco, “creating a better environment for doing business is key to our work in Morocco”[1]. She added that “clear and transparent regulations allow small businesses to realize their potential through increased access to finance”[1]. Mr Khalid Zbir, the Head of Branch Network and Public Credit Registry Department of CBM, added that “our partnership with IFC will help begin the necessary reforms to let businesses access the much needed financing opportunities that will contribute to their growth”[1].

IFC’s assistance to Morocco is being made available though the “MSME Technical Assistance Facility in MENA [Middle East and North Africa]”, a joint initiative of IFC and the World Bank, a US-based development bank, with the support of the governments of Canada, Denmark, Japan, Switzerland and the United Kingdom.

IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013. IFC’s strategy on Morocco focuses on economic growth, private-sector development, job creation, small business funding, promoting renewable energy, infrastructure improvement and economic inclusion of women and young people.

By Alíz Crowley, Research Associate

About International Finance Corporation (IFC)

The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.

Sources and Additional Resources

[1] International Finance Corporation News, IFC Supports Financial Infrastructure Reforms to Benefit Small Business in Morocco

MicroCapital, July 15, 2014, International Finance Corporation (IFC) to Invest $25m in Proyectos Educativos Integrales del Peru to Establish Educational Institutions for Low-Income Students

MicroCapital, July 15, 2014, “The Microfinance Sector in Morocco: Investment Opportunities After the Crisis;” Published by MicroFinanza Rating

MicroCapital, July 9, 2014, International Finance Corporation (IFC) Increases Syndicated Loan to National Development Bank of Sri Lanka from $125m to $200m for On-Lending to Micro-, Small, Medium-Sized Enterprises (MSMEs)

MicroCapital Universe Profile: International Finance Corporation (IFC)

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