Moroccan Banks Face Slowdown as COVID-19 Impacts Loan Growth

The growth of outstanding loans has slowed to 3.2% at the end of July over seven months with a slight recovery to 5.8% over one year, reports L’Économiste. As for the outstanding working capital loans to non-financial companies, it recorded an increase of 11.7% since January and 13% compared to July 2019. The new loans were granted at an interest rate of 3.5%, which corresponds to the ceiling set for the Damane Oxygène loans from which companies severely affected by the health crisis have benefited.

The current crisis has not spared the other loans. The outstanding loans to non-financial companies for their investments is slightly up 0.2% at the end of July over seven months. Growth stands at 4.4% over one year. The financial difficulties of companies have impacted household investments with the consequence of job losses and a drop in wages. Similarly, confinement and travel restrictions have affected real estate transactions. According to the same source, housing loans have limited their increase to 0.5% since the beginning of the year and 2.1% over one year. Result: the outstanding consumer credit is down over the two periods.

The deterioration of the outstanding receivables reached 10% since the beginning of the year and 14% over one year. The unpaid bills of non-financial companies total 43.7 billion dirhams, up 9% since January and 12.2% compared to July 2019, it is specified.