Moroccan Banks Face Credit Crunch as COVID-19 Lockdown Impacts Economy

L’Économiste based on central bank statistics to point out that "cash flow credits are declining" unlike outstanding "equipment, real estate and consumer loans are stable compared to the end of 2019". The newspaper expects "a sharp drop in indicators in the coming months, especially if confinement continues".

The health crisis has had an impact on credit production since the closure of borders. "Some of our clients, particularly car rental companies, have been hit hard by the drop in tourist arrivals. The decision to confine and close schools has accelerated the drop in production," explains a source quoted by the newspaper.