Bank Al-Maghrib (the central bank) revealed an increase in private debt issuances in the past year; where it reached 86.8 billion dirhams (8.6 billion dollars), an increase of 26 percent, taking advantage of the context of low-interest rates.
The report issued by the Central Bank on Financial Stability, which was published jointly with the Insurance and Social Reserve Supervisory Authority and the Moroccan Capital Market Authority, showed that the development was due to a 35 percent increase in certificates of deposits, as well as financing company bonds that doubled the size of their issuance from 5 to 10 billion dirhams.
According to the report, private debt issuances remained dominated by negotiable debt securities last year at 72 percent, compared to 64 percent in 2018, noting that certificates of deposit account for more than half of all private debt issues.
Bank Al-Maghrib indicated that loan institutions (banks and finance companies) remain the main issuers of the debt for 80.3 percent of the total issuances, revealing that banks have issued significant amounts of approximately 58 billion dirhams ($5.8 billion) in the market, whether in the form of certificates of deposit or bonds, or 67 percent of the private debt issuances completed in 2019.
With regard to the contribution of private debt to financing the economy, the Central Bank revealed that its share increased from 22 percent in 2018 to 29 percent in 2019; Noting that this increase is due to a more significant increase in the volume of private debt issuances, which moved from 69 billion dirhams (6.9 billion dollars) in 2018 to 82.6 billion dirhams (8.2 billion dollars) last year.
Source (Al-Arabiya.net website, Edited)
