Morocco placed 39 placed in the collection complexity index, said the leader in credit insurance Allianz Trade in its recent publication on this index ranking.
Morocco is placed after Togo, and before India in a very high level of complexity, with a total of 57, slightly lower than the previous edition, according to the report’s graphic.
The collection complexity index developed by Allianz Trade measures how difficult it is for a company to recover unpaid invoices in a given country, explained the report.
This edition ranking involved 49 countries that represent 90% of the world’s GDP , and 85% of international trade flows.
The average DSO in Morocco remains high and the payment behavior of domestic companies is degrading, with payments taking place between 120 to 150 days on average.
Additionally, the judiciary is a multi-layered system that remains under influence and is criticized for its lack of organization, efficiency, and transparency in the country.
Commencing legal action would be unreasonable in most cases while enforcement judgments would be difficult. In all circumstances, entrusting collection specialists with a strong knowledge of the local market remains the wiser approach, said the same source.
Various insolvency proceedings are available in Morocco but these remain complex, slow, and mostly inefficient when it comes to collecting debt, added the report.
Regarding the top 3 countries with the least complex collections, Sweden leads the ranking with a total score of 30, followed by Germany (30), and Finland (32), remaining stable compared to the previous edition.
New Zealand represents the first non-European country to stand out for ease of collection, followed by Brazil (12th, with a score of 36), and Brazil (20th, 43), said the same source.
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