This new guarantee facility, which will collect financing resources for companies whose cash flow has deteriorated due to the decline of activity, covers 95% of the amount of the loan and thus allows banks to quickly set up exceptional overdrafts to finance the working capital needs of the concerned enterprises, the ministry of Economy said in a press release.

These bank financings, which are added to the existing financing lines, cover up to 3 months of current operating expenses (salaries, rents, payment of necessary purchases, etc.) and can reach up to 20 million dirhams (MDH), the source added.

Regarding companies which do not have short-term financing lines, this exceptional overdraft can reach 5 million DH.

"Damane Oxygene" is mainly intended for micro, small and medium-sized enterprises (MSME) whose turnover does not exceed 200 million dirhams.

Due to the exceptional nature of this crisis, mid-sized companies, whose turnover ranges between 200 million DH and 500 million DH, can also benefit from this facility, the source pointed out.

Thanks to this new mechanism, which reflects the State's strong commitment to supporting businesses, banks have now sovereign support to enable them to continue and further strengthen the support they already provide to MSMEs, the source said.