Morocco continues to ease financing burdens

Morocco's central bank, Bank Al-Maghrib, has observed a growing credit dynamic characterized by a general trend toward easing financing burdens, especially for the business sector. The latest monetary policy report indicates a notable drop in average loan interest rates by 16 basis points, settling at 4.66 percent in the first quarter of 2026.

This downward trend has directly benefited non-financial companies, which experienced a significant reduction in their applicable interest rates, reaching 4.54 percent during the same period. The improvement in corporate financing is attributed to lower costs for equipment loans supporting capital investments and treasury facilities designed to cover daily liquidity requirements.

On the household front, financing conditions saw a slight uptick in interest rates for personal loans, now at 5.74 percent. Despite this marginal increase, families continue to show a strong demand for credit, with loan growth reaching 3.6 percent. This sustained demand is occurring within a socio-economic context where the national unemployment rate remained stable at approximately 10.8 percent in the first quarter.

Overall, credit extended to the non-financial sector continued its upward trajectory, growing by 8.1 percent in April. This expansion was primarily driven by private companies, whose loans saw robust growth of 6.4 percent, benefiting from the aforementioned reductions in financing costs. The central bank's data also indicates a healthy financial position, with the non-performing loan ratio stable at 8.3 percent, reflecting the banking system's resilience and the capacity of both households and businesses to meet their financial obligations in a stable economic environment.