Loans to the economy rose 3.6% year-on-year (YoY) in February 2020, against 3% in January 2020 and 8.6% one year earlier, reports the BCT note on “Economic and monetary developments/April 2020” published on Tuesday.
This trend is explained by the increase in the rate of growth of loans to professionals (+4.5% YoY against 4% one month earlier) and those granted to individuals (+1.1% a YoY gainst 0.6%).
This leap was perceptible in short- and medium-term loans to professionals as well as in consumer credit. Decline in banks’ average liquidity needs in March 2020
The Banks’ average liquidity needs regressed, in March 2020, to 10.122 MD after 10.757 MD the previous month and 16.349 MD one year earlier.
This decline was favoured, in particular, by the Treasury’s expenditure in terms of Assimilated Treasury Bonds (ATB) reimbursement of 398 MD and salary payments.
Thus, the volume of BCT interventions on the money market stood at 9.784 MD on average in March 2020, down by 654 MD in comparison with the previous month.
By main operations, this evolution bears the mark of the reduction in the volume of main refinancing operations (from -439 MD on average) to reach 5.461 MD, and the drop in foreign exchange swap operations from 476 MD in February 2020 to 370 MD last March.
As regards interest rates, the MMR and the weighted average rate (WARR) of the main refinancing operations dropped, in March 2020, to 7.35% and 7.30% respectively, following the decision of the Central Bank’s Board of Directors, in its March 17, 2020 session, to reduce the key rate by 100 basis points, in order to mitigate the repercussions of the COVID-19 pandemic on the national economy.