Morocco - Seventh Banque Nationale Pour Le Developpement Economique (BNDE) Project

Report No. 585-MOR FILE COPY Appraisal of Banque Nationale pour le Developpement Economique Morocco November 27, 1974 Industrial Credit and Development Finance Companies Division Projects Department Europe, Middle East and North Africa Region Not for Public Use Document of the International Bank for Reconstruction and Development International Development Association This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  CURRENCY EQUIVALENTS (Dirh as per US$) Trade Conversion Selling rate Factor December 1970 5.04 5.o6 December 1971. 4.68 5.o6 December 1972 4.77 4.66 December 1973 4.30 4.27 March 1974 4.35 4.19 May 1974 4.39 4.19 July 1974 - 4.19 This report uses rate of: US$ 1.00 = DH 4.30 FISCAL YEAR January 1st to December 31st This report was prepared by Messrs. Charles MacNealy and Abdul Haji based on their visit to BNDE in July 1974.  APPRAISAL OF BANQUE NATIONALE POUR LE DEVELOPPEMENT ECONOMIQUE TABLE OF CONTENTS Page No. SUMMARY AND CONCLUSIONS ........................ i-ii I. INTRODUCTION ....... ............................. 1 II. THE ENVIRONMENT ............... .. ......... A. Economic Situation ........................ 1 B. Structure of Manufacturing Industry ....... 3 C. Financial Community ....................... 3 B. Interest Rates .... ............... .... 4 III. BNDE's STRUCTURE ...... ..................... 5 A. Corporate Status ..... ................... 5 B. Ownership and Control ................... .. 5 C. Board and Executive Committee .......... ... 5 D. Management and Staff ...................... 6 E. Policies and Procedures ................... 7 IV. BNDE's OPERATIONS .. ............................. 10 A. Operations .. .............................. 10 B. Characteristics of Operations .... ......... 10 C. Impact of BNDE's Operations .... ........... 12 V. BNDE's FINANCIAL STRUCTURE ..................... 13 A. Resource Position ......................... 13 B. Financial Position and Performance .... .... 14 C. Audit ........... .......................... 17 VI. PROSPECTS ...................................... 17 A. The Environment ........................... 17 B. BNDE's Operations ......................... 18 C. BNDE's Projected Financial Situation ...... 18 VII. THE LOAN -- OBJECTIVES AND JUSTIFICATIONS ...... 20 VIII. RECOMMENDATIONS ................................ 21  TABLE OF CONTENTS (Continued) LIST OF ANNEXES 1. Industrial Code of August 13, 1973 2. BNDE's Shareholders 3. Board of Directors 4. Organization Chart 5. Statement of Policy 6. Analysis of Investments Approval 7. Investment Projects Approved Government 8. Projects Committee Under Bank Loans 660-MOR, 736-MOR, 890-MOR 9. Statement of Resources 10. Summary Balance Sheets (1970-1974) 11. Summary Income Statements (1970-1974) 12. Analytical Ratios 13. Equity Portfolio at 12/31/73 14. Past Operations and Forecast of Operations 15. Estimated Resource Needs and Financial Plan 16. Projected Income Statements 17. Projected Balance Sheets 18. Projected Source and Application of Funds 19. Schedule of Estimated Disbursements  BANQUE NATIONALE POUR LE DEVELOPPEMNTF ECONOMIQUE BASIC DATA I. Year of Establishment: 1959 T1'. Ownershi: (As of-6/30/74) (DH '000) Moroccan Government and Public Institutions 12,369 38.2 Moroccan Private Institutions 959 2.9 Moroccan Individuals - 5,591 17.3 Foreign Financial Institutions 8,699 26.8 IFC ~~~~~~~4X782. 14