HomeEconomyThe Government Council adopts a draft decree relating to the State guarantee

The Government Council adopts a draft decree relating to the State guarantee

On Thursday, the Council of Government adopted draft decree No. 2.22.925 setting the conditions for granting the State guarantee to cover emergency liquidity, taking into consideration the observations raised.

Presented by the Minister of Economy and Finance, Nadia Fettah, this project falls within the framework of the application of the provisions of Article 67 of Law No. 40-17 on the status of Bank Al-Maghrib ( BAM), promulgated by Dahir n°1.19.82 of 17 Chaoual 1440 (June 21, 2019).

According to the government spokesman, Mustapha Baïtas, who spoke at a press briefing after the Council, the said law authorizes BAM, within the framework of the exercise of its mission of contributing to the maintenance of the financial stability, to provide, on a discretionary basis, emergency liquidity in favor of a credit institution having liquidity difficulties and presenting doubts as to its solvency, subject to having the State guarantee as cover of these operations, the conditions of which are set by regulation.

This guarantee granted, on an exceptional basis, by the State to BAM, within the framework of maintaining financial stability, aims to preserve the financial solidity of the Central Bank after having provided emergency liquidity to credit institutions, a- he said, noting that this draft includes a set of provisions that define the conditions for granting the state guarantee to cover emergency liquidity.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

MOST RECENT

TRENDING