Outstanding Debt: Jouahri Aims to Unlock 100 Billion Dirhams from Bank Balances
Abdellatif Jouahri, the governor of Bank Al-Maghrib, has expressed his determination to tackle the issue of outstanding debts that hinder the financing of the Moroccan economy. According to his recent statements, approximately 100 billion dirhams remain tied up in the banks’ balance sheets, limiting their ability to support businesses and economic projects.
A Major Challenge for the Moroccan Economy
Outstanding debts have long posed an obstacle to business financing and the smooth flow of bank credit. These immobilized amounts not only affect banks’ profitability but also impede economic recovery. The governor emphasizes that unlocking these resources is crucial for enhancing banks’ capacity to extend credit, stimulate investment, and support the sectors most affected by recent economic challenges.
Targeted Measures to Reduce Non-Performing Loans
Bank Al-Maghrib is collaborating with financial institutions to identify tailored solutions, including restructuring distressed loans, improving monitoring of defaulting companies, and establishing guarantee and support mechanisms for strategic sectors. These measures aim to clean up bank balance sheets while maintaining a balance between financial prudence and support for the real economy.
Expected Impacts on Financing and Investment
Releasing these 100 billion dirhams could unlock new liquidity for businesses and accelerate investment projects, particularly in the industrial, agricultural, and infrastructure sectors. For Jouahri, the objective is clear: to strengthen the resilience of the banking system while stimulating economic recovery so that enterprises have sufficient resources to grow and create jobs.
A Priority for Economic Stability
This initiative is part of a broader strategy aimed at enhancing the resilience of the Moroccan financial system. Reducing outstanding debts is regarded as a key lever for improving liquidity, reducing risks, and ensuring sustainable financing for the national economy.
