It reflects the continued activity of the commercial sectors in the country

13 billion dirhams in financial facilities provided by banks for pledge letters within 3 months

The cumulative balance of letters of credit has kept a good pace of rise.

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The value of letters of commitment that banks operating in the country provided to their institutional clients amounted to about 13 billion dirhams within three months, according to statistics issued by the Central Bank.

The banks ’continued financing of this type of services reflects the continued activity of the commercial sectors in the country.

In light of the continued provision of financial facilities by banks, their total cumulative balance increased to about 248 billion dirhams at the end of January 2021, compared with approximately 235 billion dirhams in November of 2020. It is evident from the statistics that the cumulative balance of letters of credit has maintained a good pace. From the high, as it reached about 245.8 billion dirhams in December of 2020, before jumping to the level it reached at the end of January of this year.

It is expected that the increase in the balance of the facilities for letters of credit will continue in the coming months, especially with the return of the commercial sectors to their previous activities of the temporary closures that they witnessed in the first half of 2020 as a result of the new circumstances imposed by the Corona pandemic.

It is noteworthy that the letter of undertaking is a commitment made by the bank on behalf of the customer / buyer with the aim of paying the seller (supplier / exporter), according to the content of the undertaking, after completing the required documents and in accordance with the terms of the undertaking.

This type of banking services contributes to protecting and supporting the buyer, as he does not have any obligation to pay except after submitting documents proving that the goods were shipped or delivered as agreed upon with the seller.

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