World Bank Group’s private sector arm, International Finance Corporation (IFC), is planning to invest up to €30 million ($35 million) in a new distressed asset recovery facility in Morocco, alongside German distressed debt investor EOS Holding GmbH, as it seeks to strengthen the country’s market for non-performing loans and distressed real estate assets.

The proposed €60 million ($70 million) Distressed Asset Recovery Program (DARP) facility will purchase retail and small and medium-sized enterprise (SME) and corporate non-performing loans (NPLs), as well as real estate-owned assets (REOs), from Moroccan financial institutions. The project, disclosed on August 17, 2026, is currently pending approval, with a projected board date of October 15, 2026.

IFC targets Morocco’s distressed assets market

IFC and EOS are expected to provide up to €30 million ($35 million) each in pari-passu equity investments to fund the facility. The proposed transaction would mark IFC’s first DARP investment in Morocco and expand its involvement in the country’s financial markets.

The facility will target several categories of distressed assets, including consumer NPLs, corporate NPL portfolios, individual corporate NPL assets, and non-performing loans owed by micro, small and medium-sized enterprises.

The investment is expected to help Moroccan financial institutions dispose of distressed assets and release capital that can subsequently be recycled into new lending.

EOS brings distressed debt expertise

EOS, the project sponsor, is a Germany-headquartered distressed assets investor and servicer with more than 50 years of experience in acquiring, pricing and managing NPL portfolios and REOs.

The company is a major player in distressed asset markets across several European countries and has expertise in both secured and unsecured retail, SME and corporate non-performing loans.

EOS is wholly owned by Otto Group, a German conglomerate with interests spanning retail, e-commerce and services.

The proposed facility will therefore combine IFC’s capital with EOS’ experience in distressed asset acquisition and servicing, with the partners targeting opportunities across Morocco’s financial sector.

IFC expects wider impact on Moroccan lending

IFC expects the investment to provide capital relief for Moroccan financial institutions by enabling them to sell non-performing loans and other distressed assets. This could allow banks and other lenders to recycle capital into new loans while helping borrowers normalize their financial obligations.

The project is also expected to support greater competition in Morocco’s distressed asset market by attracting additional private capital and strengthening the ecosystem around NPL resolution.

Beyond its financial commitment, IFC said the project could provide non-financial support through knowledge transfer to local loan servicers and law firms working with EOS.

The project has been classified as an FI-2 environmental category investment, indicating limited environmental and social risks, and is being handled by IFC’s Regional Industry team covering financial institutions in Africa and North Africa.