German development bank KfW has agreed to disburse a total of €200mn in two loans to support Moroccan small and medium enterprises (SMEs).

The first loan, worth €150mn, was issued to Finéa, a subsidiary of the Moroccan promotional bank Caisse de Dépôt et de Gestion (CDG). Finéa will then on-lend these funds to the country’s commercial banks to grant loans to SMEs.

A second loan worth €50mn was signed with Crédit Agricole du Maroc (CAM), Morocco’s agricultural development bank. The bank will be able to issue loans directly to SMEs operating in rural areas or in the agriculture and food industries.

“Improved access to credit facilitates growth and employment in Morocco and improves the living conditions of thousands of people,” says Norbert Kloppenburg, a member of KfW group’s executive board.