FOM Newsletter November 2001
Morocco Week in Review
 November 17,  2001

CASABLANCA- United Parcel Service (UPS), a world leader in parcels and documents conveying, will enlarge its network in Morocco by opening a new agency in Rabat. The decision to set up this new agency, that will be dedicated on November 17, was made to meet the increasing demand of customers in this region, a statement by the company said. UPS is projecting to set up four other agencies in Morocco before end 2002.

RABAT - The Moroccan government has drafted a law project to ban the manufacturing and use of black plastic bags, said minister of territory development, urbanism, housing and environment, Mohamed El Yazghi. The official told the parliament the project now submitted to the government general secretariat seeks to regulate the use of plastic packaging, particularly for food. After he explained the problem of waste in general and of black plastic bags, in particular, which are now a threat to environment, he announced another draft law on waste treatment meant to end the proliferation of the hideous black plastic bags is now under study. He said fighting the phenomenon needs the collaboration of all public authorities, local councils, civil society and individuals and regulation of plastic items production by increasing their weight. He also cited a survey which found out that 94 plants in Morocco produce these environment-harmful plastic bags, including 56 in Casablanca.

A group of Moroccan non-governmental organizations and the German Frierich Ebert Foundation opened on Friday a national colloquy to look into "serious human rights violations in Morocco: for a comprehensive, fair and just settlement." The colloquy features four workshops on truth, compensation, rehabilitation, state responsibility and institutional and legislative reforms.  Speakers at the opening session noted that the event is a historic and very important moment where the past, the present and the future intermingle. They also said it is an unprecedented act for the consecration of human rights principles and the rule of law. Participants also pleaded for a new approach to the problem on the basis of truth, acknowledgment by the state of its responsibility, safeguarding the memory, rehabilitating victims and undertaking the needed institutional and legislative reforms. The opening session took place in the presence of human rights minister, Mohamed Aujjar, chairman of the Arab human rights institute, Brahim Bakouch, heads of Moroccan human rights organization and delegates of political parties.

The European Investment Bank has extended Morocco a loan of 40 million Euros for a project to rehabilitate major irrigation facilities in Morocco. The contract was signed by Moroccan minister of economy, finance, privatization and tourism, Fathallah Oualalou, and the Bank vice-president, Francis Meyer. The project, extending over five years, is estimated to cost 84 million Euro.

Princess Lalla Amina launches construction of mentally-handicapped center in Rabat.

Morocco's Princess Lalla Amina, honorary chairwoman of the association of friends and families of mentally-handicapped persons, launched on Friday construction of a social and vocational training center for mentally-handicapped persons. The center will be built over 1,440 square meters donated by the government. It will receive mentally-handicapped persons aged over 18 who will receive training adapted to their physical and mental potential. Construction cost is estimated at four million DH (US$ 0.36 million), equipment costs at 500,000 DH (US$ 0.04 Mln). The three-storey building will also comprise a garden, offices and workshops in addition to 10 rooms.

Chairman of the Moroccan BMCE foundation, Othmane Benjelloun, and Senegal's first lady, Viviane Wade, who chairs the "education and health foundation" launched on Tuesday construction of a rural community school in Mbissao, a small Senegalese locality. The BMCE (Banque Marocaine de Commerce Exterieur) foundation is financing construction and equipment of the school, designed to resemble in its architecture its sister-school "Medersa.com," built by BMCE. Benjelloun, who is also the chief-executive officer of BMCE bank, noted that the problem of education is almost the same in the two countries and requires the mobilization of all components of society, on the side of public authorities.

The Muslim fasting and prayer month of Ramadan will start on Saturday in Morocco, the Moroccan ministry of Habous (endowments) and Islamic Affairs announced on Thursday.The holy month already started This Friday in several Muslim countries including the United Arab Emirates, Saudi Arabia, Bahrain, Qatar, Iraq, Jordan, Palestine, Egypt, Kuwait, Syria, Algeria, Tunisia and Libya.

Poll of Tourism Professionals Proclaims Marrakesh Hotel World's Most Luxurious.

LONDON- "Amenjena" hotel in Marrakesh was proclaimed as the most luxurious hotel in the world, according to results of an opinion poll conducted by organizers of the London's world travel market. The poll, co-sponsored by the "Daily Telegraph" and "Sunday telegraph", covered 4,600 tour operators from 171 countries taking part in the World Travel Market. Graham Boyton from the Daily telegraph says the hotel has become the ultimate refuge of British millionaires and attracts select and rich customers. Around 120 Moroccan tour operators are taking part in the annual World Travel Market.

CASABLANCA- Moroccan enterprise phone directory telecontact which compiles addresses and phone numbers of over 50,000 companies and professionals from the regions of Rabat and Casablanca is now available on Internet (www.telecontact.ma). The free access site is also accessible on mobile phones, through the WAP and gives links to similar sites abroad. The Telecontact Internet data are updated four times a year while the hardpaper version is updated only once a year.

NEW YORK, Nov 9 - In a report issued today, Standard & Poor's states that the financial strength of Moroccan banks in the years ahead will principally be determined by the economic and competitive environment in domestic financial markets. (The report, Bank Industry Risk Analysis: Morocco, is available on RatingsDirect, Standard & Poor's Web-based credit analysis system.)  Emmanuel Volland, a director in Standard & Poor's Financial Services Group in Paris, explains in the report that Morocco's economy is characterized by high volatility of GDP, as well as a low level of savings, labor rigidities, and inadequate legal infrastructure.  He points out that the Moroccan economy could come under further pressure as a result of the Sept. 11 terrorist attacks in the U.S. In addition, low inflation and interest rates are putting pressure on banks' interest margins and profitability. To cope with growing competition, Moroccan banks are expanding new business lines, but rapid growth could create unexpected problems that would only be revealed during an economic downturn. Private-sector banks dominate commercial banking in Morocco, although the state controls about one-third of banking assets.Outside of the Banques Popuaires group, state-controlled banks mainly limit their activities to the designated sectors of agriculture, real estate and tourism, and long-term industrial lending. Mr. Volland explains that excessive concentration on these sectors, coupled with poor credit underwriting, mismanagement, and corruption led two state-controlled banks, CIH and CNCA, to the verge of bankruptcy; their nonperforming loan ratios were in excess of 40% at Dec. 31, 2000. He points out, however, that the government has since designed a bailout plan that includes recapitalization, subsidized loans, and a change of management. Moroccan banks' asset quality is weak and has deteriorated in the past three years, reflected in a ratio of gross nonperforming loans of 17.5% for the system at Dec. 31, 2000--9.1% if state banks are excluded.  Increasing exposure to small and midsize companies could put additional pressure on banks' asset quality in the medium term. While loans are generally well backed by collateral, the Moroccan Code of Commerce weakens the position of banks in dealing with nonperforming loans. "In general," says Mr. Volland, "Moroccan private banks are up to the challenge." The largest institutions have strong franchises and adequate financial strength, as well as a significant foreign-shareholder presence. The banking sector is characterized by relatively wide interest margins, adequate liquidity, and an expanding range of products and services.  Standard & Poor's believes the Moroccan banking market has good potential for growth, and that banks able to diversify their businesses and earnings, while controlling risks, will be successful.  

http://www.zawya.com/Story.cfm?id=1005319132nN09224974&Section=Countries&page=Morocco&channel=All%20Morocco%20News&objectid=22403786-8F1A-11D4-867000D0B74A0D7C

RABAT, Nov 8 (Reuters) - Morocco on Thursday criticised a rating assigned to it by Standard and Poor's, saying it did not reflect the true picture of its development efforts. Last Friday, S&P said it had revised its rating outlook on Morocco to negative from stable. At the same time it affirmed its B/A3 local currency and B/B foreign currency credit ratings. It said the country's long-term ratings could be downgraded unless the government reduces the fiscal deficit, by pursuing its reform programme and improving growth prospects. "The rating was unfair because it didn't take into account the important privatisation resources as part of the ordinary receipts," a senior official at the finance ministry told Reuters. S&P considers the deficit as structural and expected to reach six percent of Gross Domestic Product (GDP) in 2002 while the Moroccan government put it at 2.8 percent only, the official said. He added that the 2002 state budget expects 12.5 billion dirhams ($1.09 billion) as receipts from the privatisation. The cabinet of Socialist Prime Minister Abderrahmane El Youssoufi plans to sell substantial stakes in state-run Banque Centrale Populaire (BCP), tobacco firm Regie des Tabacs and telecoms operator Maroc Telecom next year, the official said. Morocco cashed earlier this year $2.2 billion after sale 35 percent stake in Maroc Telecom to France's Vivendi Universal under the ongoing privatisation policy. S&P noted the six percent budget deficit target might be missed if growth is less than expected. Morocco's economic growth remains dependent on a fragile agricultural output which holds up to 20 percent of the country's $36-billion GDP. In the past three years it has suffered badly from drought which has led economic growth to stagnate. S&P said progress on improving the performance of Morocco's agriculture-based economy had been disappointing and it remained "very vulnerable to climatic vagaries".  

(Ali Bouzerda, Rabat newsroom, +212-37 720065 fax +212-37 722499, rabat.newsroom@reuters.com))

The World Back is backing the Moroccan judiciary and judicial reforms project and extended Morocco last April US$ 5.3 million to help it materialize the project. The statement was made by secretary general of the Moroccan ministry of Justice, Ahmed Ghazali, during an information meeting to present this project. Ghazali told the World Bank delegates, fund donors and magistrates, who were attending the meeting, that the project mainly seeks to provide a propitious legal and judiciary environment to national and foreign investors, through the modernization of courts and local trade registers. The project also provides for training for magistrates and court clerks to enable keep up with legal and economic mutations in the world of business. WB delegates pledged the international financial institution will carry on its assistance to Morocco in all the phases of the project.

RABAT, Nov 14 (Reuters) - Morocco's cereal stocks up to September 15 stood at 1.42 million tonnes, including 1.04 million tonnes of soft wheat, a senior Agriculture Ministry official said on Wednesday. The soft wheat stocks would cover four months of the North African country's milling needs, he told Reuters. Cereal imports stood at 1.01 million tonnes, including 0.69 million tonnes of soft wheat up to September 15, he said. The import season in Morocco runs from June 1 to May 30. The United States contributed to 25 percent of Moroccan cereal imports, knocking France from its traditional leading position as Morocco's main cereal supplier. France accounted for 19 percent of Morocco's cereal purchases followed by Canada with 16 percent. The country milled in the June 1-September 15 period 1.1 million tonnes of cereals including 0.93 million tonnes of soft wheat. Cereal sales on the local market stood at 0.94 million tonnes including 0.88 million tonnes of soft wheat.

RABAT, Nov 16 (Reuters) - Morocco's trade deficit in the nine months up to September stood at 32.93 billion dirhams ($2.85 billion), almost unchanged from the same period of last year, a trade ministry official said on Friday. Compared with its level a month earlier, the deficit rose 10 percent, he added. January-September's imports and exports both inched up less than 0.5 percent each to 91.1 and 58.2 billion dirhams respectively. "The cover ratio of exports to imports appreciated by 0.2 percentage point to stand at 63.9 percent," he told Reuters. He said while exports of phosphates and their by-products rose 6.9 percent to 9.8 billion dirhams, other exports shrank 0.7 percent to 48.4 billion dirhams.

(Rabat newsroom, +212-37 720065 fax +212-37 722499, rabat.newsroom@reuters.com)

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