Morocco/A drive for sustainable regional development

Published on 01/03/2024 | La rédaction

Maroc

The Fonds d'Équipement Communal (FEC) is stepping up its focus on sustainable regional development, with sustainability at the heart of its actions as a lever for performance and growth.

The FEC is also committed to promoting projects that are both sustainable and beneficial to the target populations, notably through the integration of environmental and social risk management (E&S) into the assessment process for projects submitted for financing.gration of Environmental and Social (E&S) risk management into the assessment process for projects submitted for financing, says the Fund in a press release issued for the 4th quarter of 2023. In 2023, the Bank continued to consolidate its commitment to local authorities, providing them with the financing and support they need to carry out investment projects tailored to their priority needs.s to their priority needs, in particular those aimed at promoting regional attractiveness, reducing territorial and social disparities, and combating regional vulnerability to the effects of climate change. The main operational and financial indicators recorded by the Bank at the end of 2023 showed a favourable trend compared with the previous year, testifying to the Bank's resilience and ability to adapt.The same source reported that the Bank's main operational and financial indicators at the end of the year showed a favorable trend compared with the previous year, testifying to its resilience and the strength of its fundamentals, against a backdrop of tighter refinancing conditions both nationally and internationally. At operational level, loan commitments and disbursements reached more than 4.3 billion dirhams (MMDH) and more than 4 MMDH respectively for the year 2023, a significant increase compared to 2022, of more than 60% for loan commitments, and more than 38% for loan disbursements. This level of lending activity is exceptional in view of the FEC's co-financing of a strategic project of national interest, aimed at combating water stress and mitigating the impacts of climate change.

The 46 projects financed by the Bank in 2023 involved socio-economic investments that are sustainable in E&S terms, thus contributing to sustainable and resilient territorial development in the face of the effects of climate change.

Similarly, the E&S rating results for these projects show a predominance of projects classified in "Categories D and C", i.e. over 89%, involving projects with minimal and easily manageable risks.

For their part, financial indicators showed a positive trend at the end of 2023, with net banking income up slightly on the previous year to MAD 669 million.This was due in particular to the quality of the loan portfolio to date, and to the increase in customer receivables. In 2023, FEC net income is expected to be lower than in 2022, taking into account the Bank's contribution to the Special Fund for managing the effects of the earthquake in the Kingdom of Morocco. Adjusted for this contribution, net income would be of the same order as last year.

Source: albayane.press.ma/


Did you like this article? Share it ...

comments

Leave a comment

Your comment will be published after validation.