Increasingly heavy household debt (BAM)

Overall household debt increased further in 2021, reaching 386 billion dirhams, or 4.8% more over one year. Home loans represent 65% and consumer loans 35%. Overall household debt continues to represent more than a third of the loan portfolio of credit institutions. With inflation and the deterioration of purchasing power, the 2022 figures are expected to be more alarming.

Overall household debt continues to soar. In 2021, its outstanding amount reached 386 billion dirhams, of which 13.3 billion hope for crowdfunding. Household debt increased by 4.8% over one year, thus approaching its average level of growth of 4.9% observed over the period 2013-2019.

Composed of 65% of housing loans and 35% of consumer loans granted by banks and finance companies, the overall debt of households continues to represent more than a third of the loan portfolio of these establishments, indicates Bank Al-Maghrib (BAM) in its 2021 report on financial stability.

Relative to GDP, household debt fell by 32 to 30% at the end of 2021, in line with the recovery in GDP after its sharp contraction observed in 2020. Compared to other economies, this ratio remains, according to BAM, at a level well below that observed in several countries, in particular the developed economies.

In detail, the Central Bank indicates that the indebtedness of residents, representing a dominant share in the overall debt of households, reached 366 billion dirhams with an annual increase of 4.7%. In relation to GDP, it fell from 30 to 28%. That of Moroccans residing abroad (MRE) accumulated nearly 20 billion dirhams, an increase of 6.7% after the 5.1% decline recorded in 2020. This debt weighs for 28.9% of their transfers against 27.5% a previous year. Regarding housing credit in 2021, it stands at 248.4 billion dirhams, with an increase of 4.5% over one year, against 4.6% in 2020 and 4.7% on average. over the period 2015-2019.

Compared to the last decade, its rate of growth has largely decelerated in connection in particular with the sluggishness of the real estate market observed in recent years. BAM also specifies that almost the majority of housing loans are allocated at a fixed interest rate, ie 92% of the total outstanding amount of loans distributed. The term of this type of credit has been lengthened more and more in recent years. Those greater than or equal to 20 years currently represent more than half.

The lengthening of the maturities of housing loans increases the borrowing capacity of the beneficiaries. However, warn the services of Abdelatif Jouahri, the predominance of loans granted at fixed rates constitutes a risk for the banks, in particular in the event of a rise in interest rates in the future.


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