►The CCG will transform into an SA and change its name.
►A bill approved by the Government Council today will allow it to directly distribute loans to businesses.
The Council of Government approved today, as expected, Bill 36.20 which concerns the transformation of the CCG into a public limited company.
The objective of this project is to provide the appropriate regulatory framework allowing the CGC to support public strategies and policies regarding access to finance for SMEs, public enterprises and other categories of enterprises targeted by public policy in matter.
The main objectives of this bill are:
1. Transformation of the CCG into a public limited company, by creating a legal framework introducing best practices in terms of transparency and governance rules.
2. Extension of the CGC’s functions and redefinition of its objectives, in particular the implementation and monitoring of government policies regarding access to finance.
3. Strengthening of the governance system, the company being managed by a board of directors chaired by the Minister of Finance and which includes independent members;
4. Strengthen and maintain the financial viability of the guarantee system by merging the funds Managed by the fund on behalf of the State, into the financial product of the company;
5. Define a new contractual framework between the State and the company which sets its new priorities.
Name change
The bill also introduces a new corporate name for the Central Guarantee Fund: The company’s public bank. En arabe: The General Contracting Bank
Distribution of credits
It is also a question of subjecting the company to all the requirements of Law No. 103.12 and paving the way for new activities, including the distribution of credits for the benefit of companies, under special conditions.
The process of granting loans for the benefit of companies, according to specific conditions to be fixed by a decree of the Wali of Bank Al-Maghrib.
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