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 to 80% of the property price (compared with 70% previously) the ceiling on dirham mortgage loans granted by Moroccan banks to MRE and non-resident foreign individuals, with no limit on the number of properties financed for MRE.
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. 196-206), details the conditions applicable to external financing, dirham loans to non-residents and trade credits.
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External Borrowings by Moroccan Legal Entities (Art. 196-200)
General Principle
Moroccan legal entities registered in the commercial register, as well as branches of foreign companies registered with the Exchange Office, may contract external loans in the cases provided for by the IGOC 2026. 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: buyer or supplier credits contracted directly by importers to finance their imports of goods, as well as credit lines contracted by Moroccan banks with foreign financial institutions. The interest rate and duration must be in line with prevailing conditions on external markets at the date of the contract;
- Financial loans: loans contracted directly by Moroccan legal entities from foreign lenders to finance investment operations in Morocco;
- Export credits: credits contracted directly by exporters of goods and services to finance or pre-finance their exports;
- Refinancing: loans intended to refinance existing commitments under these external financings;
- International bond issues: they are not among the external financings defined by the IGOC 2026 and remain subject to prior authorization from the Exchange Office.
Conditions and Repayment
Repayment is made at maturity and covers:
- The principal of the borrowing according to the contractual schedule;
- Interest, at the rate set by the contract, which must be in line with external market conditions at the date it is signed (payment of late-payment interest or penalties remains subject to Exchange Office authorization);
- Banking fees and commissions related to the transaction (commitment fees, management fees, exchange commissions).
Before each repayment (principal, interest, fees and commissions), the bank requires a copy of the loan agreement (duration, parties, interest rate), the repayment schedule and proof that the funds were repatriated to Morocco (Art. 12). For credits financing imports, this proof is replaced by the import document duly charged by customs. The bank and the borrowing company keep the complete file in accordance with the Commercial Code rules on document retention.
Reporting Obligations
Borrowed funds must be repatriated to Morocco by transfer received from abroad (Art. 198 and 11), except for buyer or supplier credits financing imports of goods. The bank then reports these transactions to the Exchange Office as part of its periodic banking returns (Art. 19).
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Loans to Non-Residents (Art. 201-203)
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. MRE may finance several properties. A non-resident foreigner must provide a sworn statement certifying that they own no residence in Morocco;
- The construction of real estate in Morocco.
The IGOC 2026 raises the ceiling on these loans to 80% of the price of the property to be acquired or built (compared with 70% previously). The balance is paid by the borrower in foreign currency (transfer received from abroad or debit from a foreign currency or convertible dirham account). The loaned funds are placed in a non-transferable “special” dirham account for foreigners and in a dirham account for MRE. 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.
Consumer Credit for Diplomatic Staff
Moroccan banks may also grant consumer credit to staff of diplomatic missions and international organizations accredited in Morocco. The funds are placed in a “special” dirham account that allows no transfer abroad. Before granting the loan, the bank requires a certificate of salary domiciliation, a valid diplomatic identity card and an undertaking by the embassy to repay the loan.
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Export-Related Trade Credits (Art. 204-206)
Supplier Credits and Buyer Credits
Trade credits facilitate international trade operations by offering adapted payment terms. The IGOC 2026 distinguishes:
- Supplier credits: the Moroccan exporter of goods or services grants its non-resident client a payment term repayable in the short term;
- Buyer credits: a Moroccan bank, alone or in a consortium, provides short-term financing to the non-resident client of a Moroccan exporter.
Supplier or buyer credits obtained abroad by Moroccan importers fall under external financing (Art. 196). Payment of late-payment interest or penalties remains subject to Exchange Office authorization.
Export-Related Credits
Trade credits granted to foreign clients may reach 85% of the value of the goods or services exported and cover, where applicable, 100% of the cost of export credit insurance taken out with an authorized entity in Morocco. In addition, exporters may contract export financing or pre-financing credits directly abroad (Art. 196):
- 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: exporters that have granted supplier credits must repatriate and sell on the foreign exchange market the sums collected at the maturities set by the credit agreement. Interest and financial income not included in the installments must be repatriated and sold as soon as they are collected.
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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;
- Proof that the funds were repatriated to Morocco (Art. 12) or, for credits financing imports, the import document charged by customs;
- Interest transfers are carried out in compliance with tax rules (withholding tax) and cover the amount net of tax where the tax is borne by the non-resident lender.
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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, without prior authorization if the SME is registered in the commercial register and the loan finances an investment operation in Morocco, imports or exports. The rate and duration must be in line with external market conditions and the funds must be repatriated to Morocco. For any other purpose, Exchange Office authorization is required. 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 sets the ceiling at 80% of the price of the property to be acquired or built (compared with 70% previously). Within this limit, the ratio actually granted depends on the bank’s policy and the borrower’s profile. The balance is paid in foreign currency.
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 bank executes the interest transfer only in compliance with tax rules (Art. 8 of the IGOC 2026). Where the tax is borne by the non-resident lender, the transfer covers the amount net of the withholding.
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