In brief: The IGOC 2026 regulates external financing in Morocco: foreign currency borrowings by Moroccan legal entities, loans to non-residents (MRE mortgage loans, consumer credit for diplomatic staff) and trade credits linked to exports. The IGOC 2026 raises the financing ratio for mortgage loans granted to MRE and non-resident foreigners. Upsilon Consulting supports you in structuring and ensuring compliance for your international financing operations.
Recourse to external financing is a strategic lever for Moroccan companies seeking to diversify their funding sources, benefit from more favorable interest rates or support their international trade operations. Exchange control regulations govern these transactions to ensure external debt sustainability and flow traceability.
The IGOC 2026, in its Chapter IV, sections 4 and 5 (Art. 196-219), details the conditions applicable to external borrowings, loans to non-residents and trade credits.
—
External Borrowings by Moroccan Legal Entities (Art. 196-205)
General Principle
Moroccan legal entities (companies, public institutions, local authorities) may contract foreign currency borrowings from authorized foreign financial institutions. These borrowings are subject to bank delegation: the authorized intermediary bank verifies the transaction’s compliance and monitors repayment.
Authorized Borrowing Types
The IGOC 2026 distinguishes several categories of external financing:
- Import credits: financing linked to the acquisition of capital goods or raw materials from foreign suppliers. The duration is generally aligned with the depreciation period of the financed asset;
- Commercial loans: medium- and long-term borrowings from foreign banks to finance business development;
- International bond issues: debt securities issued on international markets, reserved for large companies and public institutions with a credit rating.
Conditions and Repayment
Repayment is made at maturity and covers:
- The principal of the borrowing according to the contractual schedule;
- Interest calculated at the rate agreed between the parties;
- Banking fees and commissions related to the transaction (commitment fees, management fees, exchange commissions).
The authorized intermediary bank processes repayment transfers upon presentation of the loan agreement, amortization schedule and debit notices. It retains the complete file for five years and keeps it available for the Exchange Office.
Reporting Obligations
Any external borrowing must be declared to the authorized intermediary bank within 30 days of the fund drawdown. The declaration includes the loan characteristics (amount, currency, duration, rate, schedule) and the identity of the foreign lender.
—
Loans to Non-Residents (Art. 206-213)
MRE and Non-Resident Foreign Mortgage Loans
Moroccan banks are authorized to grant mortgage loans to MRE and non-resident foreign nationals for:
- The acquisition of real estate in Morocco (primary or secondary residence, rental investment);
- The construction of real estate in Morocco;
- Renovation works on existing properties.
The IGOC 2026 introduces an increase in the financing ratio for these loans, allowing banks to cover a larger share of the property’s value. This measure aims to facilitate property ownership in Morocco for MRE and foreigners, while supporting the real estate sector.
Loan repayment may be made through:
- Transfer from abroad in foreign currency, converted to dirhams by the bank;
- Debit from a foreign currency account or a convertible dirham account held in Morocco;
- Deduction from rental income generated by the financed property.
Consumer Credit for Diplomatic Staff
Moroccan banks may also grant consumer credit to staff of diplomatic missions and international organizations accredited in Morocco. These loans are governed by specific ceilings and guaranteed by the allowances and remuneration paid by the employing organization.
—
Export-Related Trade Credits (Art. 214-219)
Supplier Credits and Buyer Credits
Trade credits facilitate international trade operations by offering adapted payment terms. The IGOC 2026 distinguishes:
- Supplier credits: the foreign supplier grants a payment term to the Moroccan importer. Settlement occurs at the agreed maturity, with or without late-payment interest. These credits are short-term (generally less than 360 days);
- Buyer credits: a foreign bank directly finances the Moroccan importer for the settlement of a foreign supplier. These credits may be medium-term for capital goods.
Export-Related Credits
Moroccan exporters may benefit from trade credits to finance their export operations:
- Export pre-financing: advance granted by the bank before goods shipment;
- Mobilization of accrued receivables: discounting of receivables from foreign buyers;
- Export documentary credit: payment guarantee by the foreign buyer’s bank.
Payment terms granted by Moroccan exporters to their foreign clients are governed by the IGOC: repatriation of export proceeds must occur within the regulatory deadlines, unless specifically authorized by the Exchange Office.
—
Common Documentary Obligations
For all external financing operations, the following supporting documents are required:
- The loan or credit agreement signed between the parties;
- The amortization schedule detailing repayment installments;
- Bank debit and credit notices relating to drawdowns and repayments;
- Commercial invoices for credits linked to import or export transactions;
- Customs declarations (DUM) where applicable;
- The tax compliance certificate for interest transferred abroad (withholding tax).
—
Reference texts: Instruction Générale des Opérations de Change (IGOC) 2026 (PDF)
Frequently Asked Questions
Can a Moroccan SME borrow directly from a foreign bank?
Yes. Moroccan legal entities may contract foreign currency borrowings from foreign financial institutions, subject to declaration to the authorized intermediary bank within 30 days of the drawdown. The Moroccan bank monitors repayment and ensures regulatory compliance.
What is the financing ratio for a mortgage loan granted to an MRE?
The IGOC 2026 raised the applicable financing ratio, allowing banks to cover a larger share of the property’s value. The exact ratio depends on each bank’s commercial policy and the borrower’s profile. We recommend consulting your bank and seeking support from Upsilon Consulting to optimize your file.
Is interest paid to a foreign lender subject to withholding tax?
Yes. Interest paid to non-resident legal or natural persons is subject to a withholding tax whose rate depends on Moroccan tax legislation and applicable tax treaties. The tax receipt attesting to payment of this withholding is a mandatory supporting document for the transfer.
How can Upsilon Consulting support us?
We assist with the structuring of external financing, the preparation of declaration files, the monitoring of repayment schedules and compliance with exchange control regulations and applicable taxation. Contact us for a personalized assessment.
READ ALSO:
