Morocco to Cover Loan Interest for Households Impacted by COVID-19 Crisis

Good news for struggling Moroccan households! The State and the banks want to cover the interest generated by the deferral of installments on their bank loans.

This decision was unanimously taken by the Economic Monitoring Committee, which met on May 8, 2020 under the chairmanship of Mohamed Benchaaboun, Minister of Economy and Finance.

"For individuals whose incomes have decreased due to the declared state of health emergency, it has been decided that the State and the banking sector will cover the full amount of the interest charges generated by the deferral of maturities," the CVE said in a statement. According to the same source, this support concerns "housing and consumer loans" and the deferral (and coverage) covers "the period from March to June 2020".

Furthermore, to benefit from this special measure, certain conditions must be met: having monthly loan payments of up to 3,000 DH for housing loans and 1,500 DH for consumer loans, including those taken out with finance companies. In other words, this measure targets a population of "400,000 people who should benefit from the deferral of loan maturities".