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European Investment Bank
Jun 02, 2021, 19:42 PDT

LUXEMBOURG, 02 June 2021 / PRN Africa / -- EIB and CIH BANK sign first financing agreement for a total of €60 million (MAD 640 million).

Deal comes under Team Europe's response to COVID-19 to support small and medium-sized enterprises (SMEs) and mid-caps hit by the impact of the health crisis.

Financing line underpins CIH BANK's strategy of diversifying and expanding its business portfolio to benefit Moroccan companies.

The European Investment Bank (EIB) and CIH BANK today signed their first financing partnership for a total of €60 million (i.e. MAD 640 million) to strengthen support for SMEs and mid-caps. The assistance is part of CIH BANK's support measures for Moroccan companies to stimulate the economic recovery from the impact of the pandemic.

More broadly, the financing is part of the European Union's external lending mandate and falls under the Bank's COVID-19 response and the Team Europe programme. The support is intended to help develop the private sector by focusing on SMEs, increasing competitiveness and creating jobs.

The financing agreement will benefit from the EIB's expertise in promoting green financing and optimising the provision of financial services to SMEs and, in particular, the smallest companies.

“I am very pleased to announce this first financing contract with CIH BANK, a long-standing player in the Kingdom of Morocco's banking sector. Faced with the consequences of this unprecedented health crisis, it is our responsibility to strengthen support for companies by providing financing and assistance tailored to their needs,” said EIB Director General Luca Lazzaroli. “The private sector has a key role to play in Morocco's recovery and economic dynamism. We are proud to be able to support the country through our expertise and investment. Thanks to this agreement, we will also be boosting employment, particularly for young people.”

Chairman and Chief Executive Officer of CIH BANK Lotfi Sekkat said: “With our first financing partnership with the EIB, CIH BANK is strengthening all the measures it has taken to support small and medium businesses and cushion the impact of the health crisis on the economy. Even though we are in the midst of a pandemic, the economy must get back on its feet and we all need to contribute to its recovery. I think that although they have suffered, the companies that were faring well before the crisis will bounce back thanks to the support and help provided by our country's economic operators.”

Note to editors

The EIB has been a key partner for Morocco for 40 years. The EIB finances the development and implementation of important projects in vital sectors of the Moroccan economy such as business support, agriculture, water and sanitation, education, health, transport and even renewable energy.

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SOURCE European Investment Bank