Presentation taoufiq-lahrach-caisse-centrale-de-garantie-morocco

CAISSE CENTRALE DE GARANTIE :CCG’s Challenges

Global Conference on Guarantee Schemes for SME Financing

Tallinn, June 8th 2011

Taoufiq LAHRACH

Some Information about Morocco

• Population : 31 Million

• GDP : 779 Billions MAD (1 Euro = 11.4 MAD)

• Debt : 49.3 % of GDP

• Treasury Bond (Maturity 5 years) : 3.93%

• Bank Credit to the Economy: 530 Billions MAD

• Bancarisation Rate : 50%

• Market Capitalisation : 532 Billion MAD

• Fitch – S&P Rating : BBB/Stable

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200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

Issu

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ara

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on

MA

D

Years

Issued Guarantee Trend 1998-2010

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SME’s GuaranteeFund

•Investment Loans• Contract Abroad

•Young entrepreneurs• Restructuring•Upgrading•Culture’s project

1998-2008 : Each need Each offer EachFund Since 2009 : 1 Fund for different needs.

Guarantee

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• Creation• Development• Restructuring•Working capital• Venture capital

OBSTACLES

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Bureaucracy Complexity of the ProceduresRigidity in the Treatment of FilesLack of Proximity in the FieldPayementRestrictive ConditionsAcademic Vision of the SME

STRENGTHS

WEAKNESSESFinancial solidity (under State’Control)Credibility of the signatureCompetence of employeesvailability & Amiability of the StaffImproving the profitability of the banksSocial organization improveing investment

BAROMETRIC STUDY ON THE REPUTATION AND IMAGE OF THE CCG

OBSTACLES

Revision of the National Guarantee System (NGS) : 2007

Study piloting :Ministry of Finance, Central Bank, CCG, Dar Ad Damane and CaisseMarocaine des Marchés.

Several Actors Dilution of Public Efforts Limited Impact

State of NGS

Rationalize the NGSRethink its ArchitectureStrengthen its InterventionCapacity

Main Targets

Ministry of Finance

Revision ofNGS

Retained Script:

1. State: Central Actor of NGS2. CCG : Only Operator of NGS3. SME : Priority Target

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Reengineeringprocess forHeightening Rapidity

Regional Deploymentfor More Proximitywith Banks and SMEs

Setting of a New strategy

Development Plan 2009-2012

Axis I Axis II Axis III

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New Offer Adaptedto the Life Cycle ofthe SME

Axis I : New Guarantee Offer

SME

VentureCapital

WorkingCapital

DevelopmentFinancial

Restructuring

Creation

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(i) Generic Offer• Covering Financing needs: Following SME’Life Cycle• Opening to all Economic Sectors

MLT Newoffer

Leasing

VentureCapital

Workingcapital

Offer Before New NGS

Axis I: Guarantee Offer

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(ii) Multiple Financing Modes

Diversification of Financial Modes

(iii) Adapted Parameters &Risk Sharing, in Terms of :

•Guarantee Coverage Rate•Risk Ceiling•Guarantee Fees•Lim Enterprise

MLT offer

IssuingGuarantee

Following Up Payment Reconvring

Target : Elimination of redundant activities not having added values during the guarantee life cycle

•Decision process•Dematerialisation•Standardisation of

Risk Analysis.

•Limitation toEvents Impactingthe Risk.

•Adoption of theFinal LossConcept.

•Délégation toBanks.

Implenented actions

Axis II: Reengineering process Based on value analysis & Subsidiarity Principle

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Axis III: Regional representation

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•Ensure proximity to SME by exercising an advisory role•Accompagny the local banking network.•Pave the way for a new regional dynamic.

Opening of Business Centers

Production

1.041.061.081.10

1.12

1.14

1.16

1.18

1.20

1.22

1.24

PrévisionsRéalisations

Prévisions

Réalisations2009

2010

1.11

1.231.24

1.23

SME’s activity (Billion MAD)

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Quotations profile

0% 2%

9%

36%

20% 18%

8%

1% 2% 1% 2%

A B+ B B- C+ C C- D+ D D- E

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Perception

Subsidy = CostCenter

HistoricPerception

Impact

DesiredPerception

Ministry of Finance

Endowment

CCG

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Ambitions

Entreprises’Target2015 : 1% GDP

Real Strength ofProposal

Expectations

Financial institutionsound, strong and

viable withsustainable resources

Framed DiscretionaryManagement

Ambitions and expectations

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THANK YOU FOR YOUR ATTENTION