Borrowers fail to return 88.5 billion dirhams to banks so far in 2022

Borrowers fail to return 88.5 billion dirhams to banks so far in 2022
MAP
Tuesday 1 November 2022 - 11:30

Borrowers across Morocco have failed to pay 88.5 billion dirhams in bank loans by the end of September, leading to further uncertainty around bank equity after a decision by the central bank to hike the interest rate by 0.5 percent.

Bad loans, or when borrowers no longer pay in accordance with the terms of the loans, have increased by 3.7 percent by September 2022 compared to the same period last year.

In its monthly monetary statistics bulletin, Bank Al-Maghrib stated that the growth of non-performing loans stood at 4.8 percent year on year.

At the end of last July, the non-performing debt ratio was about 8.8 percent, compared to 8.4 percent in June.

The share of non-performing debts in the portfolio of banks in Morocco is expected to rise to a higher level, reaching 13.4 percent at the end of the current year, compared to 8.7 percent in 2019, according to forecasts by the Ministry of Economy and Finance.

Outstanding loans in Morocco amounted to about 1,038 billion dirhams, an increase of 5.5 percent year on year, according to Bank Al-Maghrib statistics.

All estate loans represent about 297 billion dirhams, including 18 billion dirhams in the framework of participatory financing, which recorded an increase of 22 percent compared to the same period last year.

Consumer loans reached at the end of September about 57.5 billion dirhams, an increase of about 3.2 percent.

The public sector benefited from loans of about 73 billion dirhams at the end of September, of which local administrations amounted to 25 billion dirhams, and 48.8 billion dirhams for the benefit of non-financial public institutions.

Loans granted to the private sector amounted to about 822 billion dirhams, 444 billion dirhams went to non-financial institutions.

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