Morocco faces 100 billion MAD in nonperforming debts, Justice Minister warns

Morocco faces 100 billion MAD in nonperforming debts, Justice Minister warns
Monday 30 March 2026 - 17:23

Morocco is grappling with roughly 100 billion dirhams tied up in nonperforming debts, Justice Minister Abdel Latif Ouahbi said Monday, highlighting systemic issues in the judicial and financial sectors.

“These funds are circulating through unscrupulous operators,” Ouahbi told the House of Representatives’ Committee on Justice, Legislation, and Human Rights. “We held a meeting with the governor of Bank Al-Maghrib and are moving toward halting and eliminating these practices.”

The minister stressed the economic impact of unlocking such capital. “If these funds were invested productively, they could significantly boost the economy and even finance another World Cup,” he said.

Ouahbi also addressed shortcomings in Morocco’s judicial expertise system, particularly regarding court-appointed experts. “The Court of Cassation states that when a party requests an expert opinion, the court does not assess the accuracy of that opinion,” he explained. “Judicial authorities have no right to intervene.”

He described the cycle of conflicting expert reports as a drain on banks and insurance companies. “Sometimes you have an expert report, a counter-report, and another counter-report. The biggest victims are insurers and banks,” Ouahbi said, illustrating the issue with a case in which a farmer used property valued at one billion centimes as collateral, defaulted on a bank loan, yet continued to use the land while the debt went unpaid for years.

“These loopholes allow individuals to retain mortgaged properties and continue exploiting them without repaying debts, contributing to the accumulation of massive nonperforming loans,” he added.

The minister emphasized that the current handling of debts often lacks precision, creating unfair outcomes and encouraging malpractice. “These issues make it necessary to revisit the system of judicial expertise, ensuring balance between expert independence and effective oversight,” Ouahbi said.

Highlighting the strategic role of judicial experts, he noted that “experts wield substantial influence, essentially shaping judicial decisions, yet judges often lack technical knowledge. The challenge is regulating them without compromising their independence.”

Ouahbi concluded that reforming the expertise system is one of the judiciary’s most pressing challenges, calling for structured oversight while preserving professional autonomy.

add your comment

Terms of publication : Not to offend the writer, people, sacred things, or attack religions or the divine self, and refrain from racist incitement and insults.

News
Morocco expects more than 70,000 civil servants to retire by 2030
Saturday 24 October 2026 - 22:00

Morocco expects more than 70,000 civil servants to retire by 2030

International
Spain’s Territorial Policy Minister urges against demonizing Morocco over Ceuta migrant crisis
Saturday 24 October 2026 - 20:00

Spain’s Territorial Policy Minister urges against demonizing Morocco over Ceuta migrant crisis

Economy
Government expects MAD 23.5 billion in 2027 revenue from tobacco, alcohol and gambling
Saturday 24 October 2026 - 18:06

Government expects MAD 23.5 billion in 2027 revenue from tobacco, alcohol and gambling

International
French protests kick off amid heavy security blanket
Saturday 24 October 2026 - 16:32

French protests kick off amid heavy security blanket