Morocco's central bank warns of rising debt

22/07/2007

[bkam.ma] Bank of Morocco

A report issued by Morocco's central bank warned of high levels of personal debt, which has increased in recent years due to low interest rates, fierce competition among banks and the state's promotion of mortgages.

The report indicated that personal debt in Morocco amounted to 116 billion dirhams (USD 14.5 billion) at the end of 2006. The report said the number of mortgages to Moroccan families increased 26% in 2006 and totals 66.5 billion dirhams. The number of consumer loans increased 20% that same year, totalling 45.5 billion dirhams.

The bank recommended that Morocco's banks be cautious about increasing levels of personal debt in the country, and highlighted the risks of variable interest rate loans which affect borrowers' ability to meet their repayment obligation if interest rates rise.