Moroccan Microcredit Crisis: 680,000 Borrowers Struggle with Repayments Amid COVID-19 Impact

Among the 840,333 clients, about 680,000 beneficiaries have had some difficulty in honoring their commitments, given many parameters including the Covid-19 context and the resulting difficulties. Thus, given the fragility of these clients, the microcredit associations granted them a three-month moratorium to allow them to find the means to repay their debts.

This deadline granted to these clients is part of the measures taken by the Microcredit Associations to mitigate the consequences of the crisis related to the pandemic, emphasized the Minister of Economy and Finance, Nadia Fettah Alaoui, stressing that these deferred repayments will not be subject to any penalty.

Other measures have been taken, always with the aim of relieving and protecting clients. According to the 2014 banking law, microcredit associations are "required" to set up cells to handle complaints filed by clients so that they can benefit from the mediation proposed in this sense by the Central Bank.