Due to the crisis, 40% of Moroccan companies are in cash flow difficulty

A proportion of 40% of Moroccan companies declared that they did not have a cash reserve compared to 8% who had a reserve allowing them to hold less than a month for the second half of 2020, according to a survey by the Haut -Commissariat au Plan (HCP).

By category, 25% of large companies (GE) have reserves that can hold for more than 6 months, against 14% in small and medium-sized companies (SMEs) and 11% for very small companies (TPE), specifies the HCP which has just published its 3rd survey on the effects of covid-19 on business activities, conducted from December 22 to 30.

Depending on the age of the companies, the survey results show that 44% of companies under the age of 10 have no cash reserve. This proportion is 38% for SMEs and 36% for LEs in the same age group.

In addition, the HCP notes that the effects of the crisis on companies’ cash flow remain heterogeneous by sector of activity. In H2-2020, 54% of heads of accommodation and catering companies declared that they had no cash reserve and 9% had a reserve of less than one month.

Read the full news https://www.en24news.com/132113/2021/01/due-to-the-crisis-40-of-moroccan-companies-are-in-cash-flow-difficulty.html

- Advertisement -

The impact is also significant in the construction sector where 46% of companies have no cash reserve and 12% have a reserve of less than a month, adds the same source. Conversely, the sectors that show a little more resilience in the face of this crisis are those of energy and education and human health, with respectively 24% and 27% of companies having a reserve of more than 6 months.

Read the full news https://www.en24news.com/132113/2021/01/due-to-the-crisis-40-of-moroccan-companies-are-in-cash-flow-difficulty.html

The results of the said survey also show that about a quarter of business leaders anticipate a severe risk of insolvency against 32% who do not foresee any risk. For about half of very small, small and medium-sized enterprises (VSEs), insolvency represents a severe to moderate risk compared to 35% of large companies.

On the support side, the HCP indicates that Morocco has put in place a set of measures to support the economic fabric and ensure the survival of businesses, in particular the postponement of loan deadlines for companies in difficulty, the postponement of tax deadlines and other support measures aimed at preserving business employment and cash flow.

By sector, 25.8% of companies in the chemical & parachemical industries declared having benefited from loans guaranteed by the State, 24.8% for mining against 12.2% for accommodation and catering companies. In total, 16% of companies say they have benefited from loans guaranteed by the State.

Read the full news https://www.en24news.com/132113/2021/01/due-to-the-crisis-40-of-moroccan-companies-are-in-cash-flow-difficulty.html

The proportion of companies declaring to have benefited from the postponement of loan maturities is 18%. It reaches 28% for large companies, 24% for SMEs and 15% for very small businesses. Depending on the activity sector, one in five companies has benefited from a deferral of credit maturities in the trade, transport and warehousing, electrical & electronic industries and metal & mechanical industries. Entrepreneurs benefiting from these financing measures are moderately satisfied. In fact, half of them believe that these measures have contributed to improving the situation of their businesses. For companies that have not benefited from any of these financing measures (67.2%), 24% of them consider that the complexity of the procedures is the main reason, followed by the lack of support (18%).

Read the full news https://www.en24news.com/132113/2021/01/due-to-the-crisis-40-of-moroccan-companies-are-in-cash-flow-difficulty.html

The survey also reveals that 13.7% of companies said they had benefited from the postponement of tax deadlines in the context of the crisis. This proportion rises to 17.6% for large companies, 15.8% for SMEs and 12.6% for very small businesses.

Concerning the proportion of companies on temporary shutdown that have benefited from tax breaks, it is 12.8% for the postponement of tax deadlines and 8.8% for the exemption and reduction of duties and taxes.

In addition, the HCP indicates that the analysis of the main difficulties encountered by entrepreneurs during H2-2020 highlights the weak demand which hinders the normal resumption of activity of more than 80% of organized companies. This difficulty is considered as the main constraint by 98% of companies operating in accommodation and catering and by 89% of those working in the textile and leather industries.

In addition, financial difficulties emerge as the main obstacle for 7 out of 10 companies, especially for small businesses (72%). Thus, financial difficulties constitute a constraint for companies in all branches of activity, in particular those operating in accommodation and catering (83.6%) and the textile and leather industries (80.7%). .

Read the full news https://www.en24news.com/132113/2021/01/due-to-the-crisis-40-of-moroccan-companies-are-in-cash-flow-difficulty.html

The main objective of this survey in its third edition is to assess the evolution of business activity during the period from July to December 2020, compare it with that of the same period before the crisis to inquire the level of performance of companies seeking the normal pace of activity.

Carried out via data collection assisted by tablet and telephone, the said survey was carried out among a sample of 3,600 organized companies representing all units operating in the sectors of manufacturing industry, construction, energy, mining, fishing, trade and non-financial market services.

These were the details of the news Due to the crisis, 40% of Moroccan companies are in cash flow difficulty for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at en24 news and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

PREV Australian prime minister concedes defeat in election
NEXT 25 persons emerge from shell-pounded steel complex in Mariupol