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IFC APPROVES US$70 MILLION CREDIT LINE FOR FOUR LEASING COMPANIES IN MOROCCO


Bibi Kasrai


WASHINGTON, D.C., June 10 -- The International Finance Corporation (IFC) is to provide four private Moroccan leasing companies with a US$70 million long-term credit line to finance the leasing of machinery and equipment to local, mainly small and medium-sized, private enterprises. The IFC credit facility will consist of a US$35 million loan for IFC's own account, and an additional US$35 million loan to be syndicated with international financial institutions. The financing is expected to help generate about 12,000 jobs in Morocco. The borrowing leasing companies -- SociÈtÈ MaghrÈbine de CrÈdit-Bail (MaghrÈbail), Sogelease-Maroc, Union Bail and Wafabail -- are leading financial institutions in Morocco. "This line of credit is designed to alleviate a major constraint on the growth of small and medium-sized enterprises, which constitute the bulk of the productive private sector in Morocco," said AndrÈ Hovaguimian, Director of IFC's Central Asia Department, Middle East and North Africa. "The credit line will give
the four leasing companies access to the international financial markets on purely commercial terms and fulfill their funding needs," said Jean-Michel Doublet, the IFC investment officer in charge of the project. "This will be an important contribution to the development and broadening of Morocco's financial sector." IFC, a member of the World Bank Group, is the largest source of direct loan and equity financing for private projects in developing countries.