Morocco's BMCE bank counters real estate crisis

* Morocco's key real estate sector healthy

* Sector hit by "psychological crisis"

* Whole economy to expand despite downturn

CASABLANCA, April 23 (Reuters) - Morocco's second-largest private bank, BMCE (BMCE.CS), signed deals on Thursday with the country's largest real estate developers to try to shield the key sector from the global economic downturn.

The real estate boom was the engine of growth in the past five years.

But investors worried the impact of the global economic crisis would wither growth and affect others sectors such as construction and the stock market, where real estate companies underpinned the bourse's good performance.

Housing Minister Taoufik Hejira said real estate was hit by a "psychological crisis" caused by the global turmoil.

"The (real) estate market is healthy with strong fundamentals. There is no real crisis in the business. It is just a psychological crisis," he told Reuters on the sidelines the signing ceremony.

Under the deals with the developers, including Addoha (ADH.CS) and CDI, the real estate arm of Morocco's biggest state fund CDG, BMCE will keep credit flowing and guarantee loans for middle class buyers.