"The banks participating in this program can benefit from monthly refinancing by BAM for a maximum amount equal to the volume of loans disbursed during the previous month", said the central bank in a circular relating to the support program for MSME funding which takes effect on April 15, 2020.

The rate of this refinancing, granted for a period of one year in the form of guaranteed loans, is equal to the weighted average of the key rate over the refinancing period, said the same source, adding that the banks are mobilizing in favor of Bank Al-Maghrib, as a guarantee for the granted refinancing, the eligible assets set in the circular No. LC/BKAM/2020/8 relating to monetary policy instruments.

To participate in a refinancing operation, the banks must send to BAM, no later than the 15th of the month following the end of each month, the state of the credits eligible for this program and disbursed during the same month.

The legal representative of the bank sends to Bank Al-Maghrib, prior to the settlement of each secured loan transaction, a moral commitment, as well as a letter of confirmation and guarantee, a promissory note and the list of claims presented as security.

On the settlement date, the Central Bank credits the central settlement accounts of the beneficiary counterparties with the amounts of refinancing granted to them, while at maturity it debits these accounts with the amounts granted, plus the related interest.

BAM may request, in addition to the usual verifications, an independent audit report, payable by the counterparties, concerning the accuracy of the sent information.

In the event of non-compliance by a bank with one of the provisions of this circular, the Central Bank debits its central settlement account for the total amount of the granted refinancing, plus interest and the related penalties.