According to the latest annual financial stability report, the average Moroccan household debt, measured as the share of income dedicated to loan repayments, saw a modest decline to 34% in 2024, down from 35% in 2023.
However, this slight improvement masks significant underlying disparities, with civil servants and individuals in their fifties accounting for a worrying share of over-indebtedness.
The joint report by Bank Al-Maghrib (BAM), the Authority for the Control of Insurance and Social Welfare (ACAPS), and the Moroccan Capital Market Authority (AMMC) provides a nuanced picture of household financial health.
Shifting debt burdens across socio-professional categories
While private sector employees constituted 42% of borrowers in 2023, their share decreased to 33% in 2024. Conversely, the proportion of civil servants among borrowers increased from 24% to 28%. Alarmingly, civil servants now bear the highest level of debt, with 62% of their income dedicated to debt repayment. This level is considered critical, despite the relative regularity of their income.
Retirees (19% of borrowers) and the self-employed (9%) maintained stable borrowing shares and generally remain less exposed to high debt burdens.
Households with incomes exceeding NLe10,000 per month (approximately €950) account for a substantial 60% of the total credit volume. However, their debt ratio remains contained at 31%, indicating that while they borrow more, they do so under more controlled conditions, suggesting a more responsible banking approach among higher-income segments.
Age-related vulnerabilities
An analysis by age group reveals that borrowers aged 50 to 60 are particularly vulnerable, with an average debt ratio of 39%, which is above the national average. This age group faces a dual vulnerability: a potential decline in income as they approach retirement, coupled with a still-high repayment burden.
In contrast, individuals in their thirties (26% of borrowers) and seniors over 60 (24%) appear to be in more stable financial situations regarding debt.
The report also highlights that more than 32% of all borrowers exceed the critical threshold of 40% of their income devoted to repayments, a level considered dangerous. Within this high-risk group, 38% fall into the 40-50% debt ratio range. Civil servants and private sector employees together comprise 68% of this at-risk segment, underscoring the fragility of the current household credit model in Morocco.
MK/ac/Sf/fss/abj/APA