MOROCCO: INTRODUCTION OF NEW MEASURES BY THE ECONOMIC WATCH COMMITTEE TO SUPPORT COMPANIES IMPACTED BY COVID-19 CRISIS.

22/04/2020

The Economic Watch Committee (EWC) members held their 5^th meeting on Monday April 20^th, 2020 through videoconferencing.

At the opening of this meeting, the members of the Committee welcomed the Government’s decision to extend the State of Health Emergency until next May 20^th, placing the protection of the citizens’ lives at the head of national priorities. Moreover, the EWC has taken into account these new deadlines in the scenarios planned for a gradual restart of economic activities once the current health crisis is surpassed.

Thereafter, Morocco's Minister of Finance reported on the progress of the measures taken to date, for the benefit of households affected by the repercussions of the Covid-19 crisis.

The members of the EWC also expressed their satisfaction regarding the rapid implementation of the arrangements decided during their previous meeting, particularly the adoption by the Government of the decree deciding the new conditions of access to the aids granted by the social security body (CNSS).

Furthermore, they announced that the operationalization of the measures decided to support companies, including those holding public contracts, in terms of payment, operating flexibility, and execution of public contracts taking into account force majeure, is on the right track.

On the tax front, a circular explaining the measures announced during the last Committee will be made public and operationalized on April 22, 2020. For this purpose, a dedicated website will be made available by the Tax Administration to the concerned employers.

During this meeting, EWC has also unveiled additional measures, namely:

Availability starting from April 27^th, 2020 of a loan of up to 15 KMAD, without any interests, for self-employed entrepreneurs impacted by the Covid-19 crisis. This credit is repayable over a period of up to 3 years with a grace period of one year. The related interests will be fully covered by the insurance sector, which will also contribute, for an amount of 100 MMAD, to the guarantee mechanism put in place by the Government through the Central Guarantee Fund.
Introduction of a derogatory accounting treatment, to spread the donations and charges arising from the period of the state of health emergency over 5 years. To this end, an emergency meeting of the National Accounting Council will be scheduled to examine the implementation methods, adapted to companies in this exceptional context.
Extension of the benefit of "DAMANE OXYGENE" to companies operating in the real estate sector suffering from a deteriorated cash flow due to the decline of their activity.
Softening of the procedures for the declaration of employees affiliated to the CNSS who are on temporary activity arrest. Reports can be made on a weekly basis starting from April 2020.

During its next meetings, the Committee will present the action plans deriving from the scenarios for the gradual restart of the various business sectors and economic recovery, which are currently being prepared.

NAZALI TAX & LEGAL

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This document provides general information on the subject and does not constitute a legal opinion or recommendation. Consulting a specialist is recommended before taking an action. No claim arising from the content of or relating to this document can be asserted against NAZALI.

Agenda

MOROCCO: INTRODUCTION OF NEW MEASURES BY THE ECONOMIC WATCH COMMITTEE TO SUPPORT COMPANIES IMPACTED BY COVID-19 CRISIS.

This document provides general information on the subject and does not constitute a legal opinion or recommendation. Consulting a specialist is recommended before taking an action. No claim arising from the content of or relating to this document can be asserted against NAZALI.