{"id":1130522,"date":"2026-08-04T21:01:14","date_gmt":"2026-08-04T21:01:14","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/1130522\/"},"modified":"2026-08-04T21:01:14","modified_gmt":"2026-08-04T21:01:14","slug":"morocco-report-finds-38-of-new-borrowers-spend-more-than-40-of-income-on-debt","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/1130522\/","title":{"rendered":"Morocco Report Finds 38% of New Borrowers Spend More Than 40% of Income on Debt"},"content":{"rendered":"

Casablanca \u2013 Nearly four in 10 Moroccans who took out or renewed a loan in 2025 are spending more than 40% of their income on debt repayments, according<\/a> to Morocco\u2019s latest Financial Stability Report, pointing to growing pressure on household finances despite an improving economy.<\/p>\n

The report, published by Bank Al-Maghrib, the Moroccan Capital Market Authority and the Insurance and Social Welfare Supervisory Authority, found that 38% of new borrowers had a debt service-to-income ratio above 40% in 2025, up sharply from 32% in 2024 and well above the 28% average recorded between 2015 and 2023. These borrowers also accounted for 45% of all outstanding loans, compared with 41% a year earlier.<\/p>\n

The findings are based on the analysis of 639,013 loan files from people who contracted or renewed credit during 2025. Their average debt burden also increased, reaching 36% of income compared with 34% in 2024 and above the 31% average seen between 2015 and 2022.<\/p>\n

Among borrowers whose debt payments exceed 40% of income, the report shows the pressure is shifting toward higher debt levels.<\/p>\n

The share of borrowers spending between 50% and 60% of their income on repayments rose to 26% from 24%, while 23% were spending<\/a> more than 70% of their income servicing debt. Functionnaires and private sector employees represented 68% of these heavily indebted borrowers.<\/p>\n

Overall household debt climbed 6.9% in 2025 to MAD 456 billion, marking its strongest annual increase since 2012. Housing loans accounted for 60% of household borrowing and consumer credit for the remaining 40%. Household debt was equivalent to 27% of Morocco\u2019s GDP, while the default rate remained high at 10.3%.<\/p>\n

At the same time, Moroccan households continued to strengthen their financial assets. Total household financial wealth rose 7.5% to MAD 1.192 trillion, supported by MAD 935 billion in bank deposits and a 40.1% jump in investments in securities, which reached MAD 114 billion.<\/p>\n

The report comes as Morocco\u2019s economy grew 4.9% in 2025, with inflation remaining low at 0.8%. While the financial system continued to show resilience, the report said the rise in household indebtedness warrants close monitoring as borrowing continues to accelerate.<\/p>\n","protected":false},"excerpt":{"rendered":"Casablanca \u2013 Nearly four in 10 Moroccans who took out or renewed a loan in 2025 are spending…\n","protected":false},"author":2,"featured_media":1130523,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[3090],"tags":[304345,22034,51,1700,307608,16,15],"class_list":["post-1130522","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-ammc","tag-bam","tag-business","tag-economy","tag-morocco-borrowing","tag-uk","tag-united-kingdom"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/117039260871543295","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1130522","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=1130522"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1130522\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/1130523"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=1130522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=1130522"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=1130522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}