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Weekly highlights

Morocco-Spain

What the new roadmap will be like

n based on transparency and based on a new roadmap. Visits from
permanent communication senior officials are on the agenda. First,
that of the Spanish Foreign Minister,
expected in Rabat before the end of
n Trade, migration manage- the month. Another, from the President

ment, security cooperation… of the Spanish government will also
the issues on the table have to be scheduled later. The idea
is to define the priority cooperation
areas. On the Spanish side, this new
ABAT and Madrid bury the
R of arm wrestling, the two bility, and will bring us certainty both
phase «guarantees the necessary sta-
hatchet. After several months
politically and in terms of its positive
countries finally agreed on
the new rules of the game. One of these effects on trade between Spain and
Morocco». For Madrid, «the density
chief new rules is «the importance of of economic exchanges must be equi-
the Sahara issue for Morocco», enshri- valent to that of political exchanges,
ned in the message of the head of the while being part of a relationship of
Spanish government, Pedro Sánchez, candor and transparency, mutual
to HM King Mohammed VI, last Fri- respect of interests, and cooperation
day. The other parameters of bilateral After the announcement of the new Spanish position on the Sahara issue, the Ministry of Foreign beneficial to both countries». Rabat is
relations have also been clearly defi- Affairs of Morocco reacted favorably to these new «positive positions and constructive commitments Spain´s third largest economic partner
ned. From now on, relations between of Spain» (Ph. L’Economiste) outside the European Union. Spanish
Morocco and Spain will be based on and constructive commitments by Spain side, the recognition of the Moroccan exports to Morocco increased by 29%
«transparency and permanent com- on the Sahara issue». Today, this evolu- autonomy initiative as the most serious, in 2020/2021. More than 17,000 Iberian
munication, mutual respect, and on tion of the Spanish position on this stra- realistic, and credible basis, allows the companies have commercial relations
the agreements signed by both parties tegic issue seems more in line with the Iberian neighbor to relaunch a «stable with Morocco and 700 are established
and marked by the abstention from principles set by the King in the speech and good relationship», according to on Moroccan territory, underlined the
any unilateral action, in keeping with of August 20th. The Sovereign had cal- the Spanish presidency. For Madrid, Spanish Minister of Foreign Affairs.
the importance of everything that we led for «establishing an unprecedented «the world needs cooperation between This economic and trade cooperation is
share», according to the presidency of stage in relations between the two countries and working together on all the more important as global supply
the Spanish government. Rabat picked countries, based on transparency, mu- common problems». chains are currently disrupted due to the
up these positive signals and reacted fa- tual consideration and respect for the In any case, the revival of relations repercussions of the war in Ukraine.o
vorably to these new «positive positions commitments made». On the Spanish between Morocco and Spain will be Mohamed ALI MRABI
Payment time limits: Big companies rule the roost

n They pay their suppliers later to SMEs and VSEs payments wit- increase in their customer terms of Inforisk. Large companies therefore
hin normal deadlines. In 2020, a year payment by paying their suppliers la- continue to underperform in terms of
n Terms of payment have dete- marked by the Covid-19 crisis and its ter. In 2020, the net balance between payment terms. To put an end to bad
impact on the economy, these com- customer and supplier terms of pay- practices, the draft law provides for a
riorated: 279 days for VSEs and panies had to face an extension of the ment improved by one day,» underlines strong measure: the publication of the
129 days for SMEs terms of payment. These deteriorated Inforisk. Still, SMEs with less than 50 list of bad payers, which has been pro-
from 66 days to 279 days on average million MAD in turnover are less well ven elsewhere.
for VSEs in 2020 according to the In- off: they find themselves with a pay- The year 2020 was also characterized
n Intercompany credit falls forisk survey. This is an alarming level ment period of up to 14 days! by the drop in intercompany credit

below bank credit which can only deteriorate the business The great paradox comes from large standing below bank credit. Intercom-
climate, because, instead of focusing companies: in the midst of the Co- pany credit stood at 372 billion MAD
on the development of their activity vid-19 crisis, they have improved their versus 413 and 415 billion MAD res-
T payment is still awaiting treat- and on the search for new markets, payment terms from 2 days to 95 days. pectively in 2019 and 2018. This deve-
HE blight of the terms of
entrepreneurs spend their time run- In a position of strength, these large lopment is due to the support measures
ment. The draft law sent to the
Competition Council for an ning after the collection of their dues. entities make sure to get paid on time put in place by the government for the
Without great bargaining power, VSEs but are reluctant to do the same, espe- benefit of the business world. These
opinion before entering the legisla- are unable to pass on these delays to cially with VSEs and SMEs. «Large support measures are in particular the
tive circuit should, once adopted and their suppliers. They find themselves companies pay their suppliers later Damane Oxygène and Damane Re-
published, reverse the trend. Long in fact in a situation of lenders with an than they get paid by their customers, lance products. This year, an amount
payment terms are the cause of the average gap of 133 days between their all with a positive impact on their cash of 53 billion MAD was distributed to
agony of an entire section of small customer and supplier deadlines. flow. This is explained by a favorable companies, including 10.6 billion to
and medium-sized entities. The law In the case of SMEs, the delays stood balance of power and a bargaining VSEs and 32 billion to SMEs.o
should trigger the change process at 129 days, i.e. an increase of 12 days. power that allows them to impose their Khadija MASMOUDI
which should guarantee, in particular, «SMEs have managed to pass on the conditions on trading partners,» notes
Friday 25 March 2022