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Insolvency and Creditor Rights ROSC Assessment of Morocco


Dissemination Seminar of March 7, 2006


On March 7, 2006, the World Bank organized a dissemination seminar in Rabat, Morocco, to present an assessment of the credit environment of Morocco.  This evaluation was conducted by the Legal Department of the World Bank in cooperation with the Moroccan authorities on the basis of the World Bank’s Principles and Guidelines for Effective Insolvency and Creditor Rights Systems (Principles).


Main Findings of The Assessment


The overall findings of the assessment, included in a comprehensive report of about 60 pages, are positive, and a number of aspects of the Moroccan credit environment system are consistent with the Principles.    In addition, the Moroccan authorities are pursuing important efforts in the legal and judicial sector, which address a number of weaknesses that were identified during the assessment. 

Specifically, the protection of creditor rights is relatively modern in Morocco, even though the framework for collateral and liens remains somewhat complex.   Morocco’s financial sector is, however, constrained by a number of difficulties encountered with judicial proceedings, but the reliability of debt collection and foreclosure mechanisms has reportedly been improving. 


The Moroccan insolvency framework was entirely overhauled in 1996 with the adoption of a new Commercial Code.    Both liquidation and reorganization procedures are available under the new system, as well as a more informal pre-insolvency scheme, in compliance with international best practice.   The rights of creditors in the proceedings are however limited, which impedes the effectiveness of the new system in a context where insolvency judges and administrators may lack the necessary training.  


The establishment of commercial courts in 1997 significantly improved the treatment of commercial and credit-related cases, which is perceived as being been more efficient and coherent.    It is also acknowledged that efforts need to be pursued regarding in particular judicial training on commercial law, credit and banking-related issues as well as insolvency. 




A World Bank team first met with the Moroccan authorities to finalize this assessment and discuss possible follow-up assistance.  A broader dissemination seminar was then organized in the World Bank’s Public Information Center located in the country’s National Library in Rabat to present the assessment’s methodology and findings. 


More than 60 representatives of the legal, financial, business and academic communities, as well as senior public officials, participated to the discussions.  Major emphasis was given to the strengths of the insolvency and creditor rights regime in Morocco, the need to pursue on-going training efforts for judges and judicial professionals, as well as the crucial relevance of these topics to the stability and development of the financial sector of Morocco.   The dissemination seminar was covered in Nawafid Maghreb, an external publication of the World Bank focusing on North Africa.


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Updated as of: September 15, 2006

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