Dakar, Dec 17 (APS) – Senegal's National Credit Council on Thursday stressed the need to pay particular attention in public policies to the removal of constraints that may hinder the financing capacities of credit and financial institutions to finance the economic recovery.

"In view of the marked uncertainties regarding the evolution of the Covid-19 pandemic as well as the downside risks to economic activity, the Council recommended that particular attention be paid in public policies, to the removal of constraints that may hinder the financing capacities of the economic recovery by credit institutions and microfinance institutions," the structure said in a statement.

The document sanctioning the 30th meeting of the CNC of Senegal, a structure under the National Directorate of the Central Bank of West African States (BCEAO) evokes at the same time the importance of accelerating structural reforms, in particular with regard to the resolution of commercial disputes, able to guarantee the consolidation of the business climate in the relations between the financial sector and its customers.

The CNC organized by videoconference also took note of the recent situation of the banking system and the microfinance sector, marked by a good resilience of credit institutions in the face of the impacts induced by the Covid-19 pandemic on economic activity.

On the other hand, microfinance institutions, despite reassuring credit indicators, are characterized by a high sensitivity to the impact of the pandemic, the statement said.

It indicates that the financing of economic activities has been relatively well maintained, mainly for the benefit of the public sector, in conjunction with the support measures taken by the BCEAO and the National Authorities to mitigate the impact of the deceleration in economic growth on financial sector customers.

"Compared to the end of December 2019, the jobs of credit institutions increased by 8.2% at the end of October 2020 and those of microfinance institutions stagnated at the end of September 2020," noted the CNC.

He thus welcomed "a controlled impact of the crisis on the compliance, with the standards set, of supervised banking institutions and large microfinance institutions".

The CNC of Senegal held its thirtieth meeting by videoconference, under the chairmanship of Moussa Touré, Director of Money and Credit, member of the Monetary Policy Committee (MPC) of the BCEAO, representing the Minister of Finance and Budget, Statutory Chairman of the CNC.