Casablanca – By the end of 2023, Morocco’s public external debt rose to approximately $45.2 billion, reflecting an increase of $1.55 billion (or 3.6%) compared to the previous year. This growth highlights the country’s continued reliance on external financing, with France maintaining its position as the leading bilateral lender to Morocco, holding about $3.86 billion in debt, or 40.9% of Morocco’s bilateral obligations.

Key developments in debt growth

According to Morocco’s Ministry of Economy and Finance, the country’s external debt saw notable changes throughout 2023. The Ministry’s report, attached to the 2025 Finance Bill, revealed that the external public debt increased by $1.55 billion during the year, bringing the total to $45.2 billion.

The public external debt now represents 30% of Morocco’s Gross Domestic Product (GDP), a decrease of 1.8 percentage points compared to 2022. This decline reflects adjustments in the country’s overall economic performance relative to its debt burden.

Breakdown of external debt

The external debt consists of obligations held by the Moroccan treasury, guaranteed and non-guaranteed loans to public institutions, local governments, and state-backed enterprises. Specifically, treasury debt played a key role in the overall increase, with its volume rising by 10.8%, reaching $26.1 billion at the end of 2023, up from $23.6 billion the previous year. Treasury debt now constitutes 17.3% of GDP, a slight increase from the end of 2022.

In contrast, external debt held by other public borrowers—such as state-owned enterprises—decreased by $1 billion, falling to $19.1 billion at the end of 2023, down from $20.1 billion in 2022. This represents a decline of about 5.0%.

France leads bilateral lending

France remains Morocco’s largest bilateral lender, with a debt portfolio valued at $3.86 billion, representing over 40% of the country’s bilateral debt. Germany follows with $2.48 billion (26.3%), Japan with $1.13 billion (11.9%), and Saudi Arabia with $495 million (5.2%).

Bilateral debt, in total, saw a decrease of approximately $505 million, reaching $9.45 billion by the end of 2023, down from $9.96 billion in 2022. Of Morocco’s bilateral debt, 75.2% is owed to European Union countries, followed by Japan (11.9%) and Arab nations (8.9%).

Multilateral lenders and institutional debt

Multilateral creditors remain a significant component of Morocco’s external debt. By the end of 2023, Morocco owed $23.2 billion to international institutions like the World Bank, African Development Bank, and European Investment Bank. These organizations account for 51.2% of Morocco’s total public external debt, with the World Bank alone holding $9.84 billion, or 42.5% of multilateral loans.

The overall debt owed to multilateral lenders grew by $257 million in 2023 compared to the previous year.

Decreases in non-guaranteed loans

Non-guaranteed loans—debts not backed by the government—saw a modest decline of $113 million, bringing the total to $6.23 billion by the end of 2023. This amount constitutes roughly 4.1% of Morocco’s GDP.

Long-term debt structure and future projections

Morocco’s debt portfolio remains heavily skewed towards long-term obligations, with 90.6% of external loans having an original maturity of over 10 years. The remaining short-term debt, due within a year, represents only 8.7% of the total public external debt. The country’s external debt repayment schedule spans many years, with treasury debt being repaid between 2024 and 2033.

Looking ahead, the Ministry of Economy and Finance projects that the cost of repaying Morocco’s official external debt (excluding government bonds) will decline by 63% annually over the next decade. This reduction could see average repayments drop to around $3.4 billion annually between 2024 and 2028, and further to $2.47 billion per year from 2029 to 2033. However, several key debts—especially those owed to the World Bank and the European Investment Bank—will still need to be settled during this period.

With Morocco’s external debt nearing $45.2 billion and international lending dynamics continuing to evolve, the country is expected to maintain careful debt management. France, Germany, and multilateral institutions will remain essential lenders in the years ahead, while Morocco works to reduce its debt servicing costs and maintain financial stability.