Private sector export promotion project

The Ministry of Finance, the Banque du Maroc, and the International Executive Service Corps (IESC) will implement the three project components. An autonomous export credit insurance organization, to be jointly owned by the Government of Morocco and by commercial banks and insurance companies, will be created to replace an older, less effective public organization. An $8 million reserve fund for the organization will be capitalized initially with project loan monies. Unlike its predecessor, the organization will develop efficient, computerized operational and administrative procedures and an aggressive marketing program. TA, commodities, and on-the-job and formal short-term management training will be provided to ease the transition to the new organization and to implement the above improvements. To increase the availability of prefinancing credit to small and medium-sized enterprises and to firms new to export, the project will establish an $8 million prefinancing credit facility to be jointly managed by the Banque du Maroc and commercial banks. The facility will be based in many respects on the bank"s existing prefinance program, but in order to reach its target borrowers will be much more flexible. Significant changes will be made regarding credit rates, credit ceilings, eligibility, and the approval process. Reflows through the facility should result in an additional $30 million in credit over the next 5 years. A study will be undertaken to determine the prefinancing credit needs of indirect exporters. Finally, IESC will: (1) provide technical and marketing assistance to some 130 individual firms; (2) identify and implement export marketing projects that involve groups of firms or associations; (3) administer a fund to finance special activities to benefit the private sector export community; and (4) provide a long-term advisor to CMPE focusing on trade promotion, informational and institutional development, export education, and training needs and opportunities. Amendment of 7/28/89 adds a trade and investment services (TIS) program to be implemented by IESC. The TIS will stimulate both Moroccan-U.S. joint ventures and Moroccan exports to the United States by (1) identifying firms that are good candidates for joint ventures and providing a range of services to facilitate such ventures; and (2) identifying exportable Moroccan products, helping to ensure the quality and reliable production of these products, and hiring subcontractors to arrange sales to U.S. buyers. (PD-AAZ-935)