Morocco’s Central Bank to Tighten Housing Loan Regulations by 2021

It is time to be vigilant in the banking system. To secure assets, banks are taking measures. Bank Al Maghrib is adopting new rules that will allow to avoid bankruptcy in this sector, we learn from l’Économiste.

These new rules, specific to dations in payment and which should come into force by 2021, will allow banks to be reimbursed for the loans granted for real estate. The interest for the banking regulator is to prepare the supervision of the real estate indebtedness of households.

According to l’Économiste, the very high outstanding amount is 226 billion dirhams, with a default rate of 6.8% in 2019. In view of this situation, the ratio between the amount of the loan and the purchase price of the property and the DSTI which represent the debt service relative to income will now be taken into account; this is to "prevent excessive household indebtedness and protect banks against associated risks".

For the moment, the newspaper talks about the absence of fixed rules on the debt ratio. In the very short term, the new measures could exclude some applicants from access to real estate credit.