Morocco is planning to set up a market for non-performing loans (NPLs) offering the possibility of buying and selling of unpaid loans beyond set deadline. Banks can sell NPLs to reduce risk, free up capital, and maintain profitability, while investors seek to profit by restructuring or recovering value. Morocco’s Central bank, Bank Al-Maghrib, has been working on this project since 2022. These loans continue to weigh on bank balance sheets and limit the ability of institutions to extend new credit. By selling NPLs to the planned bourse, banks can remove bad assets from their books, allowing them to look healthier and more stable.

Source: The North Africa Journal March 27, 2026 19:46 UTC