Global Recession on Morocco's Economy

2974 WordsMay 30, 201112 Pages
TOPIC a) Analyse the effects of the global recession on Morocco’s economy. b) Discuss what action Morocco has taken to reduce the adverse effects of the downturn c) In your view, does the downturn offer any positive opportunities for Morocco? Table of contents Introduction 4 1. The effects of the global recession on Morocco’s economy 5 1-1 The impact of the international financial crisis on Moroccan financial economy 5 1-2 - The Moroccan economy facing crisis 6 2. Actions taken to reduce the adverse effects of the downturn by Morocco 7 3. Does the downturn offer any positive opportunities for Morocco? 9 Conclusion 11 References 12 Introduction The international financial crisis has largely been…show more content…
"Some foreign investors in the place could liquidate their position if they are affected by the crisis. But none of this has been reached, "said the director of Project Financing in BMCE Abdellatif Nasserdine. The only impacts that the crisis could have on the place of Casablanca are psychological. The mistrust that has plagued the world in relation to real estate assets could be extended to Moroccan operators. Several reasons explain the remoteness of the international crisis in the Moroccan stock exchange Moreover, the Moroccan banking system is composed of mainly Moroccan-owned banks (BMCE, BCP, Attijariwafa Bank) which control 70% of Morocco's banking market, and majority foreign-owned banks (SGMB, Credit Du Maroc, BMCI) that share 30% of the Moroccan banking market. Recall that BNP Paribas owns 63% capital in BMCI, Societe Generale control with 51% of the SGMB and Credit Lyonnais has majority in Crédit du Maroc with 52% of capital. Yet according to the financial press, many French banks are affected by the crisis: - The Societe Generale has not yet digested the loss of 5 billion of EURO attributed to its trader. Its shares have lost 50% of their value. - The Crédit Agricole difficulties through its Calyon business bank wich will cut 500 jobs. In Morocco, the economy is rather well behaved throughout the years 2008 and 2009, the greater control

    More about Global Recession on Morocco's Economy

      Open Document