Household indebtedness increased further in 2021, as did the outstanding amount of non-performing loans which reached 38.9 billion dirhams, according to the latest joint report on the financial stability of Bank Al-Maghrib and of the Moroccan Capital Market Authority.
The ninth report on financial stability, jointly prepared by Bank Al-Maghrib, the Moroccan Capital Market Authority (AMMC) and the Insurance and Social Welfare Control Authority (ACAPS) analyzed the level of indebtedness individuals in Morocco. We thus learn that the overall debt of households reached an amount of 386 billion dirhams at the end of 2021, up 4.8% compared to 2020. Nearly 13.3 billion dirhams of this debt comes from crowdfunding.
Made up of 65% of housing loans and 35% of consumer loans granted by banks and finance companies, the overall debt of households continues to represent more than a third of the loan portfolio of these establishments. , says the report.
Resident indebtedness, representing a dominant share in overall household debt, reached 366 billion dirhams with an annual increase of 4.7%. That of Moroccans residing abroad accumulated nearly 20 billion dirhams, with an increase of 6.7%. This debt represents 28.9% of their transfers.
After a contraction of 0.7% in 2020 due in particular to the decline in demand and the deterioration of financial conditions for households, following the repercussions of the health crisis, outstanding consumer loans rose by 5. 3% in 2021, totaling 136 billion dirhams, of which 54% is granted by banks.
According to Bank Al-Maghrib’s annual survey of household loans, personal loans represent the preponderant share with 70% of loans granted, followed by car loans (14%), household equipment loans (11% ) and cards (4%). The repayment period for consumer loans has become increasingly longer in recent years. Loans granted for a period exceeding five years represent 78% at the end of 2021.
Outstanding outstanding household loans increased by 9.4% in 2021 to reach 38.9 billion dirhams. The default rate thus stood at 10.1% against 9.6% a year earlier and an average of 7.6% over the 2015-2019 period.
Residents’ outstanding debts totaled 37.1 billion dirhams, with an increase of 10.2%. Their default rate was 10.1%. Moroccans residing abroad, meanwhile, saw their outstanding debts drop by 8% to 1.7 billion dirhams, after recording a 23% increase in 2020.