Moroccan Household Debt Surges to 358.6 Billion Dirhams, BAM Report Shows

In detail, it is consumer credit that accounts for 37% of household debt and housing credit (63%). The latter shows an outstanding amount of 226.3 billion DH, i.e. a growth that slows to 3.8% against 5% a year earlier, while the number of beneficiaries has fallen by 1.7% to nearly 67,300. Meanwhile, the decline is 35% for state-subsidized loans, while for free loans, the number of clients has increased by 11%.

In addition, the average loan amount is 391,000 DH, down 7,000 DH year-on-year, while the outstanding amount of free loans, representing a share of 82%, has increased by 1.1%, against 6% a year earlier, the same source adds, noting that state-subsidized loans have seen their outstanding amount decline by 2.1%. Indeed, "these loans thus amounted to 38.5 billion DH, including 20.6 billion under the FOGALEF and FOGALOGE, 16.1 billion under the FOGARIM and 1.8 billion under the Habitat Bon Marché," the report points out.

For their part, fixed-rate loans account for 95% of the outstanding amount and 98% of production, while loans of more than 20 years account for 58% of the total, those between 10 and 20 years for 35%. As for the outstanding amount of consumer loans, it reached 132 billion DH, i.e. an increase of 7.4%, after 7% in 2018 and loans distributed by credit companies gain 7.4% against 8% a year earlier, those of banks advance by 7.4% against 6.2%.

Bank Al-Maghrib in its report placed loans of more than 5 years at 75% of the total, those of less than 3 years at 5%, specifying that personal loans remain the most used type of credit by all age groups with a share of 70%, while revolving cards represent 7% of credits contracted by those over 50 and only 1% by those under 30.