RABAT/WASHINGTON, D.C., October 4, 2004—The
International Finance Corporation, the private sector arm of the World
Bank Group, today held in collaboration with the Central Bank of Morocco,
a one-day conference in Rabat with the Central Bank of Morocco “Best Practices
in Management and Recovery of Non Performing Loans”.
The conference is the second in a series of five conferences organized
by IFC with local partners to share best practices, international experiences
and tools in facilitating access to finance to small and medium enterprises
and, in turn, stimulate much needed growth in the small and medium enterprises
Non-performing loans management and recovery is a major problem for the
Moroccan banks. Most of them have inefficient collection departments and
very low non-performing loans workout rates that make them very risk averse
– especially in extending credit to small businesses. Making the recovery
of non-performing loans more efficient will boost profits among the banks,
making them more receptive to lend to small businesses.
Some 200 participants participated in the conference. It brought together
leading experts and professionals in NPL management, representatives of
financial institutions, senior government officials, representatives of
Morocco’s donors and other key stakeholders.
The conference addressed topics such as non-performing loans management
within the framework of Basle II guidelines, proactive portfolio management,
role of MIS in the optimization of the recovery process, and various local
and international experiences in non-performing loans management.
“To aggressively market lending products, financial institutions need
to be confident in their capabilities to manage the associated risks“,
said Sami Haddad, IFC director for Middle East and North Africa. He added,
“By encouraging the development of sound workout practices, IFC participates
in increasing access to finance for the private sector.”
The mission of IFC (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people’s lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY04, IFC has committed more than $44
billion of its own funds and arranged $23 billion in syndications for 3,143
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY04 was $17.9 billion for its own account and $5.5 billion held
for participants in loan syndications.