Morocco Faces Highest Debt Service Costs in 2026 at 108.2 Billion Dirhams
It is expected that Morocco will face its highest debt service costs in 2026, with a total of 108.2 billion dirhams in expenses. The domestic debt dominates, accounting for nearly 77% of the total.
Debt service includes all annual payments the state is obliged to make to repay its debts, including both interest and principal repayments, which are allocated for returning the original amounts to lenders.
BMC Capital Global Research has indicated that the treasury’s debt service will see a slight increase compared to 2025, which reached 107.3 billion dirhams. The report also highlights a restructuring of the cost components, as interest and commissions are expected to decline to 44.1 billion dirhams, while principal repayments will rise to 64.2 billion dirhams due to larger maturities on medium and long-term debts.
Domestic debt continues to dominate service costs, with treasury bill and bond issuances and internal loans making up 33.8 billion dirhams, representing around 77% of total interest burdens, reflecting the continued strong reliance on the local market.
In contrast, interest on external debt in international financial markets is expected to rise slightly to 4.14 billion dirhams, while interest owed to Arab and Islamic institutions is anticipated to drop to 4.7 billion dirhams, with obligations to multilateral institutions increasing to 563 million dirhams.
Regarding principal repayments, total repayments are expected to rise to 64.2 billion dirhams, up from 62.1 billion dirhams in 2025, showing an increase of 2.02 billion dirhams. The relative share of the domestic component is projected to decrease from 86.4% to 75.2%, indicating growing maturities of some external debt.
The acceleration of principal repayments in international markets is attributed to previously issued debt maturities, not related to the 2025 issuances valued at 2 billion euros. This reflects increasing challenges for treasury management, mounting pressures on refinancing, and the need for balanced debt issuance amid rising interest rates.
