The Municipal Equipment Fund achieves a GNP up 4% at the end of September

The net banking income of the Communal Equipment Fund (FEC) reached 489 million dirhams at the end of September 2022, the bank indicates in a press release published recently. Compared to the 471 million dirhams achieved in the same period of the previous year (2021), the NBI increased by 4%.

This development is due to “the quality of the loan portfolio as well as the continued optimization of the financial resources mobilized by the bank”, indicates the document relating to the financial indicators for the third quarter of 2022.

According to the publication, loan commitments reached 2.6 MMDHS in the 9th month of the year 2022. This increase represents an increase of 34% compared to the year 2021, specifies the same source.

The progression is due to “the resumption of action by local authorities observed following the renewal of their offices, and the start of the phase of mobilizing financial resources for the realization of their projects”, according to the Fund.

This increase is also correlated to the unfavorable context of the previous year. Which is explained by a “cyclical slowdown in the rate of commitment of new projects, in connection with the electoral context”, according to the Fund.

It should be noted that receivables from customers reached 2.6 billion dirhams in 2022, an increase of 2% compared to the same period of the previous year (2.5 billion dirhams).

With regard to loan disbursements, they stood at 1.8 billion dirhams at the end of September 2022.
Loan disbursements are down compared to the same period of the previous year (1.9 billion dirhams) because they are “not impacted as quickly with regard to project execution times”, specifies the bank. .

These loan disbursements have enabled the FEC to finance several projects including “road infrastructure and specialized equipment, which represented nearly 50% of the overall volume of loan disbursements at the end of September 2022”.

Almost all funded projects are minimal low risk

It is through a systematic risk assessment, “in accordance with its environmental and social (E&S) policy”, that the FEC proceeds with financing, says the Fund.
“More than 98% correspond to projects classified in categories D or C according to the E&S rating which groups together projects presenting minimal and easily controllable risks”, indicates the press release.

Thus, out of 53 projects awarded at the end of September 2022, 42 projects are category D (79.2%), 10 category C (18.9%) and one category B (1.9%).

Osama Maleh


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