Morocco Sees 15% Surge in Business Bankruptcies, Surpassing Pre-Pandemic Levels

In a recent study conducted by the "Inforisk" Foundation, figures show that 2,694 companies in Morocco declared bankruptcy this year, an increase of 15% compared to the number of companies in bankruptcy in the first quarter of 2020 and 6% compared to 2019. Thus, great concern hangs over the activity of companies, leaving the worst to be feared before the end of the year.

Taking into account the figures from the study, the months of January and February last recorded 1,053 and 886 bankruptcy declarations respectively. This slowdown in activity is also explained by the slowdown in the activity of the commercial courts and their stoppage between March and September of last year, since the files relating to bankruptcy were not processed.

Observers link the decrease in the number of bankruptcies in 2020 to the government’s intervention, which guaranteed loans to companies aimed at supporting their cash flow, in addition to the deferral of loan payments and tax and social charges.