Over US$ 550 million extended in micro-funds in Jan-Sept 2004

The total amount of micro-credits extended between January and September 2004 has reached 5 billion Dirhams (over US$ 550 million), marking a progression of 47% compared to 2003, says the Moroccan federation of micro-credit associations.

The amount was extended as part of 2.2 million loans for 403,000 persons, including 71.3% of women, according to the source.

In the same period, the loans helped create 1,745 jobs while reimbursement rate stands at 99.7%.

The federation says the sector of micro-credit in Morocco is regulated by a clear law and a supervision of the competent authority. Micro-credit associations undergo audit and have a strong impact on recipient populations.

However, the available funds do not meet the demand, says the federation which estimates needs at 4 billion DH (over US$ 440 million) in credit lines and 100 million DH (US$ 11.1 million) in subsidies.

In rural areas, micro-credit is poorly developed and activities of the concerned associations affect 40% of urban population and 9% in rural areas.

Set up in 2001, the federation musters 12 micro-credit associations and endeavors to establish a code of ethics, see to the respect of the law regulating the sector and propose to the competent authorities actions likely to ensure the development of the sector.