Morocco Household Debt Default Tops 44.7 Billion DH
Non-performing household loans in Morocco reached 44.7 billion dirhams at the end of August 2026, up 6.7% year-on-year, Bank Al-Maghrib says, as rising living costs squeeze household budgets.
Bank Al-Maghrib has reported that non-performing household loans in Morocco rose to 44.7 billion dirhams (4,470 billion centimes) at the end of August 2026, a fresh sign of growing difficulty for Moroccan households in repaying their bank loans. The increase, 6.7% year-on-year, comes as Moroccans face mounting pressure on their budgets from the rising cost of living.
According to Bank Al-Maghrib's monthly bulletin on economic, monetary and financial developments, household non-performing debt grew by about 2.8 billion dirhams over one year, with a 1.9% monthly rise in August alone, pushing the household default rate to around 11% of total household financing, up from 10.7% a year earlier.
Breakdown of household loans
Total household loans in Morocco reached 404.4 billion dirhams at the end of August, up 3.4% year-on-year, split between consumer loans, which rose to 63.5 billion dirhams, and housing loans, which reached 259.1 billion dirhams, with total real estate loans standing at 261.4 billion dirhams.
| Loan type | Total amount | Annual growth |
|---|---|---|
| Total household loans | DH 404.4 billion | +3.4% |
| Consumer loans | DH 63.5 billion | +5.1% |
| Housing loans | DH 259.1 billion | +2.3% |
| Total real estate loans | DH 261.4 billion | +2.2% |
Households' share of total bad debt
Households account for about 42% of all non-performing bank loans, even though they hold only around a third of total performing loans. Total doubtful debt across the banking sector stood at 106.5 billion dirhams, up 3.7% year-on-year. The household default rate (11%) remains above the banking sector average (8.2%), but below that of private non-financial companies, which reached 12.3%, though corporate defaults grew more slowly, at under 2% year-on-year.
| Sector | Default rate |
|---|---|
| Households | 11% |
| Whole banking sector | 8.2% |
| Private non-financial companies | 12.3% |
Why household budgets are under pressure
The rise in defaults on consumer and housing loans is linked to eroding purchasing power among Moroccan households, amid a 24% year-on-year rise in fuel prices in August, and a 2.1% increase in volatile food prices. On the other hand, the average interest rate on individual loans stood at 5.59% in the second quarter of 2026, down slightly by 15 basis points, while the rate on housing loans held at 4.53% and consumer loans at 6.81%.
Why this number matters
The development comes amid a wider gap between macroeconomic indicators and households' daily living standards. The Ministry of Economy and Finance had recently reported 4.9% economic growth alongside an unemployment rate still near 13.5%, showing that improved macroeconomic indicators do not necessarily translate into direct purchasing-power gains for ordinary Moroccans, keeping household financing and the cost of living at the top of the new government's economic concerns.