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Loans to help Finance Two Projects in Morocco
On Monday 27/04/2020, a loan agreement and guarantee agreement for the amount of KD 70 Million were signed, in Kuwait, between the Société Nationale des Autoroutes du Maroc and the Arab Fund to contribute to the financing of a project to develop highways in the Kingdom of Morocco. The loan agreement was signed by Mr. Anouar Benazzoua, the General Manager of the Société Nationale des Autoroutes du Maroc, while the guarantee agreement was signed, on behalf of the Government of Morocco, by H.E. Mr. Mohamed Benchaȃboun, the Minister of Economy, Finance and Administration Reform. H.E. Mr. Abdlatif Yousef Al-Hamad, Director General/ Chairman of the Board of Directors of the Arab Fund, signed both agreements on behalf of the Arab Fund.
Similarly, on Saturday 09/05/2020, a second loan agreement was also signed, in Kuwait, between the Government of Morocco and the Arab Fund, providing a loan in the amount of KD 45 Million to contribute to the financing of an emergency program to ward off the effects of the Corona pandemic in the Kingdom of Morocco. The loan agreement was signed, on behalf of the Government of Morocco, by H.E. Mohamed Benchaȃboun, the Minister of Economy, Finance and Administration Reform. H.E. Mr. Abdlatif Yousef Al-Hamad, Director General/ Chairman of the Board of Directors of the Arab Fund, signed the loan agreement on behalf of the Arab Fund.
Below are the details of these loans and the projects they will help finance:
First Project:Development of Highways in the Kingdom of Morocco.
A loan agreement, valued at KD 70 Million, was signed to help finance a project which aims at contributing to the improvement and development of land transportation services on the main axes of the road network in the Kingdom of Morocco, and to accommodate the increasing traffic movement and reduce traffic accidents, as well as support the economic and social development in the Casablanca – Settat region, specifically Casablanca and its neighboring areas.
The project includes the following main components:
- Construction of the Tit Mellil – Berrechid highway.
- Expansion of the Casablanca ring road.
- Expansion of the Casablanca – Berrechid highway.
The Arab Fund loan will carry interest of 2.5% per annum, and will be repayable over 30 years including a 6 year grace period.
Société Nationale des Autoroutes du Maroc is the beneficiary of the loan.
Second Project: Emergency Program to Ward off the Effects of the Corona Pandemic in the Kingdom of Morocco.
A loan agreement, valued at KD 45 Million, was signed to help finance the a program aimed at contributing to the efforts to ward off the effects of the Corona pandemic in the Kingdom of Morocco, and the resulting negative repercussions in various sectors. The program includes the implementation of all the works, supplies, services, and advisory and technical services necessary, as agreed upon by the beneficiary and the Arab Fund.
The Arab Fund loan will carry interest of 2% per annum, and will be repayable over 30 years including a 7 year grace period.
With the signing of these two loans, the Arab Fund’s total contribution to financing projects in the Kingdom of Morocco now amounts to KD 1,539.9 Million.
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