The International Finance Corporation (IFC), a member of the World Bank Group, is in talks with Germany's EOS Group to establish a 60 million euro vehicle dedicated to purchasing non-performing loans (NPLs) from financial institutions in Morocco, according to sources familiar with the matter.
The initiative aims to help Moroccan banks clean up their balance sheets by offloading distressed assets. The vehicle would target both corporate and retail NPLs, though specific details on the portfolio composition have not been disclosed.
This move comes as Morocco's banking sector faces rising non-performing loan ratios, which reached around 8.7% in 2023, according to the central bank. The IFC has been active in the region, supporting financial sector reforms and promoting investment in distressed debt markets.
Neither IFC nor EOS has officially confirmed the transaction. The project is still in its preparatory phase, and regulatory approvals from Moroccan authorities may be required.
