“DAMANE OXYGENE” is a new guarantee mechanism launched by the Central Guarantee Fund (CGF) to enforce one of the measures introduced by the Economic Watch Committee (EWC) aiming to help companies encountering cash flow difficulties.
This additional credit line has been set up to mobilize financial resources for the benefit of companies whose cash flows have deteriorated due to the decline in their activity. It covers 95% of the credit amount and thus allows banks to quickly set up exceptional overdrafts to finance the companies’ working capital needs.
“DAMANE OXYGENE” is mainly intended for companies impacted by the COVID-19 crisis carrying out a turnover that is less than 200 MMAD. However, mid-sized companies with a turnover between 200 and 500 MMAD and which face the same cash difficulties, can also benefit from this guarantee product.
The overdraft’s amount depends on the amounts of the existing or to be set up operating lines, of which it can’t represent more than 20%, up to a limit of 20 MMAD. However, if the 20% threshold does not cover 3 months of the company’s current charges (salaries, rent, necessary supplies, etc.), the ceiling selected will then be fixed at 3 months these charges.
Note that it’s possible for companies without operating lines to benefit from this mechanism as well, banks can grant them an exceptional overdraft within the limit of 5 MMAD and 3 months of current charges.
Companies wishing to benefit of “DAMANE OXYGENE” should address to their bank their cash flow previsions detailing their operating charges, the bank grants them then a transfer authorization to cover 3 months of charges (April, May, and June).
Regarding the reimbursement, it will be made in fine, at the latest on December 31st, 2020 and can be extended up to 5 years depending on the company’s financial abilities. During an interview given recently, Central Guarantee Fund’s Director, Mr Hicham Zanati Serghini, specified that the rate applied to these bank financings was 4%.