International financial services provider, Allianz, stated that corporate bankruptcy in Morocco will rise by about 44 percent between 2019 and 2023, compared to a growth of about 2 percent as a global average
In a report, the insurance company said that the decline in economic growth of Morocco to less than 1 percent during the current year, the high cost of energy, and the increase in interest rates and wages, are factors that affect the profitability of Moroccan companies and their cash flow.
The data of the report showed that about 12,200 Moroccan companies will face bankruptcy next year, compared to 11,800 companies in 2022, compared to about 10,550 companies last year, and 8,477 companies in 2019.
The report said that inflationary pressures, monetary tightening by central banks and disruptions in supply chains, are putting corporate cash flow at risk on an overall global level.
On an annual basis, corporate bankruptcy at the global level is expected to rise by 10 percent and 19 percent next year.
According to Allianz analysts, the recovery in corporate bankruptcies is a reality for many countries, especially major European markets such as the United Kingdom, France, Spain, the Netherlands, Belgium and Switzerland, which recorded double-digit growth in the bankruptcy rate during the first half of this year.
The United States of America, China, Germany, Italy and Brazil continue to record low levels of bankruptcies, but levels are expected to rise in these countries over the next year.
The number of Morocco companies that had to close their doors permanently, since the end of March 2020 and up until October of last year is about 25,000 small and micro companies, said the General Secretary of the General Federation for Contracting and Professions, Muhammad Dahbi.
The accumulation of bank debt installments, which is evident through the significant increase in the rate of insolvent loans, in the absence of any leniency on the part of national banks in dealing with the issue, aggravated the crisis, according to the General Secretary of the General Federation for Contracting and Professions.
This aforementioned number is added to more than 50,000 small businesses that closed their doors during the years preceding the health emergency, “due to the inability of previous governments to develop an integrated strategy, in order to support this type of companies, which represents approximately 95 percent of the total Moroccan entrepreneurial fabric,” added Dahbi.
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