Payment deadlines: The ODP notes the "positive trend" of the public, the private bad student

While Morocco and the rest of the countries of the world are going through a delicate situation following the economic repercussions linked to the pandemic crisis, the Observatory of Payment Deadlines, under the Ministry of Economy and Finance, reveals, in its last annual report the maintenance of a ” positive trend in terms of payment terms of the public sector, while the private sector is still facing a deterioration at this level.

The report recently published by the ministry analyzes the payment times of the operators concerned compared to the years 2020 and 2021, thus praising the efforts made by the State, the local authorities and the establishments and companies of the public sector in the significant reduction of these deadlines, which they have been able to improve over the past five years.

In this respect, the average deadline for completion of all public contracts in 2021, for the State and local authorities, reached 18.6 days, compared to 21.1 days in 2018. For establishments and companies the time recorded is 36.1 days at the end of December 2021, compared to 55.9 days at the end of December 2018. Efforts continue for a favorable evolution of inter-company payments” emphasizes the Observatory, adding that these operators “are now well below the legal deadline of 60 days”.

It should be noted that this improvement and its results have been achieved thanks to “the reform of payment deadlines and default interest” related to public procurement, which was initiated in 2016 by the public authorities. This is in particular the result of cooperation with the CGEM, thus enabling the reengineering of the entire public procurement process. From another legal point of view, the “reduction of the overall statutory payment period from 90 to 60 days, broken down into 45 days for the authorizing officer and 15 days for the accountant” may also have contributed to this development according to the authors of the report.

However, the document notes that the payment terms of the State and the Territorial Communities for the year 2021 correspond to a total public order of 62.2 billion dirhams and this for 213,577 public procurement acts and do not represent major differences between state and local communities.

In addition, the amount recorded in terms of default interest paid to State suppliers shows a significant drop in 2021. A total of 8.5 MDH, or 97.8% of default interest, was paid in this respect. the previous year, compared to 20.3 million dirhams in 2020 and 31.2 million dirhams in 2019.

As for public establishments and enterprises (EPP), the 2021 financial year specifically concerns 191 EEP, of which almost all pay their suppliers within the legal deadlines. This is a population of 87% public establishments and 82% public enterprises. As a result, the proportion of EEP paying within the legal period of 60 days increased to 86% in 2021 against 82% in 2020.

In this sense, the ODP affirms that the AJAL platform has aroused enthusiasm since its creation, both on the part of suppliers who have used it a lot, and on the part of EEP, whose responsiveness has been able to respond to complaints. formulated. A rate of 63% of claims filed by suppliers were settled for an amount of 616.82 MDH, which contributed to a reduction in the level of complaints.

For the case of the private sector, thehe analysis of business payment behavior shows a deterioration in 2020. The average supplier payment terms recorded in 2020 reached 123 days of purchases. The report reveals that the overall average at the customer level is around 193 days of turnover, “highlighting the extent of the delays borne by companies”. These conditions lead the level of the trade balance towards an upward trend which amounts to 89 days of turnover.

According to Bank Al-Maghrib’s analysis, supplier payment times show that the portion of companies that pay their invoices within the regulatory deadlines of 60 days has fallen in 2020, from 64% to 59% ” reflecting the difficulties encountered by the latter during the crisis“, she justifies. The same source reveals that companies that pay their suppliers beyond 120 days now represent just over a quarter of the companies studied, i.e. 26%, then 24% in 2019 and 2018, and 21% in 2017.Companies that wait more than 120 days to recover their debts are still increasing, from 32% in 2017 to 34% in 2018 and 2019 and 36% in 2020.

The CGEM stresses in the same report that “ Ihe financial difficulties experienced by companies during the Covid-19 pandemic and beyond it, during the recovery phase, have aggravated the problem of payment deadlines. These delays in payment have had the consequences, in Morocco as in other countries, depending on the financial solidity of the companies, of weakening a certain number of companies, even leading to failures for some of them.“.

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