FEC fiscal year profit rises 14% in 2004

Moroccan financing institution lending to local authorities "Fonds d'Equipement communal" (FEC) said 2004 fiscal year profit rose 14% to MAD 170 million (nearly US$ 20 million).

Bank net proceeds flared by 31% to reach MAD 315 million (nearly US$ 37 million) and gross unearned revenue posted a 35% increase to reach MAD 280 million (nearly US$ 33 million).

Loans recorded a 35% increase to MAD 1 billion (US$ 117 million), while loan cashing decreased to reach MAD 752 million (nearly US$ 88 million).

The FEC also cut its interest rate to 0.5% and decided not to have recourse to commitment fees as of June 1st, 2005. This decision may have an impact of MAD 30 million (nearly US$ 3.5 million).

In a letter addressed to the council, minister of the Interior, Al Mostafa Sahel called on FEC to accompany the reforms that aim at reinforcing decentralisation so as to make of the local authorities a lever for economic and social development.

Set up in 1959 to finance local authorities investment, FEC was converted into a banking institution in 1996, while remaining a public body subject to the dual supervision of the Interior and Finance Ministries. Its transformation has been supported by international lending institutions such as the World Bank, German development cooperation agencies, USAID and the EIB. FEC is the main lender to local authorities in Morocco.