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

tDOAV (OW -'10AC FILE-copy RESTRICTED Report No. DB - 57a This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION APPRAISAL OF BANQUE NATIONALE POUR LE DEVELOPPEMENT ECONOMIQUE MOROCCO December 22, 1969 Development Finance Companies Department  CURRENCY EQUIVALENTS Currency = Dirham (DIH) DR 5.06 = US$ 1 DlH 1 = US$ 1.198 D 1,000,000 = US$ 198,000  NOROCCO APPRAISAL OF THE BANQUE NATIONALE POUR LE DEVELOPPE E) Table of Contents BASIC DATA i tii . SUM4AlRY v-- v i-viii I. INTRODUCTION 1 1 II. ECONOMIC AND FINANCIAL ENVIRONMENT 1 - 5 2 - 13 Long-term Financing in Morocco and BNDE's Role 3 - 5 8 -11 Relations with Government and Business Community 5 12 -13 III. BNDE'S GOALS, ORGANIZATION AND OPERATIONS 6 - 11 14 - 30 Objectives and Policies 6 14 Shareholders 6 15 Resources 6 - 7 16 Board and Executive Committee 8 17 - 18 Management, Staff and Procedures 8 - 9 19 - 30 IV. FINANCIAL POSITION AND OPERATING RESULTS 11 - 16 31 - 45 Evaluation of Loan and Equity Portfolio 11 - 13 31 - 35 Financial Results 13 - 14 36 - 37 Financial Position 14 - 15 38 - 40 Reserves 15 41 Interest Rate and Effect on Profit- ability and Resource Allocation 16 42 - 45 V. THE OUTLOOK 16 - 19 46 - 56 Business Prospects 16 - 17 46 - 48 Forecast of Operations 17 - 19 49 - 53 Financial Projections 19 54 - 56 VI. CONCLUSIONS AND RECOMMENDATIONS 20 - 21 57 - 65 Conclusions 20 - 21 57 -62 Recommendations 21 63 -65 Th4- etPort- i :based on the findings .of a mission consisting: oL Messrs. Pollan,-Nougaim and Hidalgo in May 1969, as-well as on subaoquent data and discussions.  List of Annexes 1. Role of BNDE in Industrial and Tourism Financing in Morocco 2. Statement of Policy 3. Shareholders and Ownership Structure 4. Resources as of June 30, 1969 5. Board of Directors as of November 30, 1969 6. Organization Chart(as of November 30, 1969) 7. Analysis of Assistance Approved 8. Equity Portfolio as of November 30, 1969 9. Profit and Loss Statements, 1966 to June 30, 1969 10. Summary Balance Sheets, 1966 to June 30, 1969 11. Forecast of Operations 1969-1974 12. Projected Cash Flow Statements, 1969-19?4 13. Projected Statements of Income, 1969-1974 * .14. Projected Balance Sheets, 1969-1974 t  BASI C DATA Year of Establishment: 1959 Ownership as of December 31, 1968 Dirhams % Government, direct and indirect 8,646,350 3.23 Moroccan private institutions 2,959,250 1h.80 Moroccan individuals 79,100 0.39 Total Moroccan 11,684,700 58.42 Foreign financial institutions 3,375,950 16.88 IFC 41,939,350 24.70 Total Foreign 8,315,300 41.58 Total Capital 20,000,000 100.00 Total Resources Net of Repayments (June 30, 1969) DH Thousands Equity 31,476 1/ Government loans ranking pari passu with share capital 4