Non-financial sector: Credits allocated increasing

The overall outstanding amount of bank loans reached 1,081.66 billion dirhams at the end of October.

The outstanding credits allocated to the non-financial sector reached 925.6 billion dirhams at the end of October, including 828.3 billion dirhams granted to the private sector and 97.3 billion dirhams to the public sector.

Credits allocated to the non-financial sector showed an increase at the end of October. Bank Al-Maghrib observed an improvement of 2.7% in this direction compared to an increase of 2.2% noted a month earlier. In this sense, we note an outstanding amount of 925.6 billion dirhams, including 828.3 billion dirhams granted to the private sector and 97.3 billion dirhams to the public sector. “The increase in loans to the non-financial sector mainly reflects that of loans to public companies which marked a year-on-year increase of 40.6% after that of 26.6% the previous month,” explains the Central Bank in this regard.

And to continue: “Regarding the private sector, the decline in loans to private companies increased from 0.7 to 1%, while the increase in loans to households decelerated from 2.3 to 2%.” At the end of October, loans taken out by private non-financial companies stood at around 441.1 billion dirhams, down 1%. Outstanding amounts allocated to households stand at 385.4 billion dirhams, an improvement of 2%. Of this outstanding amount, individuals and MRE hold loans of around 341.9 billion dirhams, up 1.9% at a time when individual entrepreneurs took out loans of around 43.5 billion. dirhams, marking an increase of 3.1%. Loans intended for non-profit institutions serving households (ISBLM) fell by 10.1%, reaching 1.8 billion dirhams at the end of October. As for the public sector, local administrations took out loans of 26.6 billion dirhams, an improvement of 3.7%.

Public non-financial companies saw their credits consolidate by 40.6%, reaching an outstanding amount of 70.7 billion dirhams over the first ten months. By economic purpose, the evolution of banking assistance to the non-financial sector covers, according to Bank Al-Maghrib, the attenuation of the drop in liquidity facilities to 4.2% after 6.8%, mainly linked to the acceleration of the increase in those allocated to public companies. Added to this is the deceleration in the growth of equipment loans to 5.1% after 5.6%, with a slowdown in those granted to private companies from 5.4 to 4.9%.

The Central Bank also notes the slowdown in the growth of consumer loans from 0.6 to 0.1% and real estate loans from 1.5 to 1.4%. As for overdue debts, their growth rate fell from 7.1% in September to 6.4% in October 2023 and their credit ratio remained stable at 8.8%. As a reminder, the overall outstanding amount of bank loans reached 1,081.66 billion dirhams at the end of October, an improvement of 4.9%.