Moroccan Justice Minister Abdellatif Ouahbi has called for enhanced dialogue between the banking sector and the judiciary to tackle the nation's significant burden of non-performing loans (NPLs). Speaking at the opening of a national seminar on the efficiency of the legal framework for judicial recovery and reform prospects, Ouahbi highlighted the critical mismatch between the fast-paced nature of banking and the slower judicial processes.
Official figures indicate that the total stock of non-performing loans in Morocco stands at approximately 100 billion Moroccan dirhams (about $10 billion USD). This substantial amount represents a persistent challenge for the country's financial system and economic health.
The minister emphasized that the current legal and procedural delays in debt recovery cases hinder the banking sector's efficiency and can stifle economic activity. The seminar aimed to explore pathways for legal and procedural reforms to create a more effective and expedient recovery framework, balancing creditor rights with necessary debtor protections.
Ouahbi's appeal underscores a governmental push to modernize financial legislation and improve the business climate by addressing a key obstacle to credit fluidity and investment security in Morocco.
