Debt in Comoros

A debt arises when a debtor owes money or another performance to a creditor. The contract normally sets the principal, interest, repayment dates, security and consequences of late payment. An arrear is an amount that remains unpaid after its due date. A creditor cannot enforce payment by taking property independently; forced execution requires the applicable legal procedure and an enforceable title or other legally recognized basis. Formal credit in Comoros is provided through four commercial banks, four deposit-taking financial institutions or microfinance providers, and SNPSF. The Banque Centrale des Comores (BCC) supervises the banking and financial system. People and businesses also use less formal arrangements with family or friends, savings clubs and, in some cases, mobile money. These arrangements may be useful but can leave weaker records and fewer structured options when repayment fails. Official sources reviewed for Comoros do not show a single national standard for affordability assessment or general private debt counselling, and there is no evidenced direct equivalent of a broad consumer-debt relief service. A borrower should keep the signed agreement, repayment schedule, payment receipts and records of any security. When an instalment becomes unpaid, contacting the creditor quickly can lead to an échéancier or an amicable settlement. Courts in Comoros may grant moderate payment periods or suspend proceedings in circumstances recognized by the Code civil. Payment-related costs generally fall on the debtor under the Code civil, but the amount and allocation depend on the case. No single national table of enforcement costs and deadlines was evidenced, so the greffe, an avocat or a huissier or commissaire de justice should confirm the current position for a specific case. Banking data for the fourth quarter of 2024 recorded approximately KMF 82 billion in credit to individuals, about 60% of bank credit to customers. Gross créances douteuses, meaning loans with serious repayment concerns, were about KMF 19.9 billion, or 13.4%. Net doubtful claims were about KMF 7.2 billion after provisions, with provisions of about KMF 11 billion and coverage of 60.3%. Weak judicial capacity, difficulties enforcing collateral and slow recovery of non-performing loans affect access to credit and the quality of financial assets. Comoros has been an OHADA member since 1995. The current OHADA Uniform Act governing simplified recovery and enforcement procedures took effect on 16 February 2024 and replaced the 1998 text. A creditor may use an injonction de payer, a court procedure seeking an order to pay, or may pursue conservatory and enforceable seizures. Available forms include seizure and sale of assets, seizure of a bank claim, seizure of remuneration and seizure of real estate. Enforcement may proceed amicably or through a huissier or commissaire de justice, but forced execution requires an enforceable title and official notification. The execution judge may grant a period, suspend enforcement or address an enforcement dispute. The Justice FAQ indicates a ten-year execution period, subject to the applicable rules and the facts of the case. A debtor may object, seek a payment period, negotiate an échéancier or request legal aid. For people with limited resources, legal aid may cover lawyer and huissier costs. OHADA also provides collective procedures for companies through the Uniform Act on collective proceedings, effective from 24 December 2015. Conciliation and règlement préventif seek to prevent or resolve financial distress, while redressement judiciaire and liquidation des biens address more severe difficulties. These procedures primarily concern debtor companies. A judicial administrator or syndic manages the relevant process, and creditors submit their claims according to the procedure. The reviewed sources do not evidence a general personal-insolvency or personal-restoration procedure for private individuals in Comoros. For natural persons, the documented tools are instead civil-law payment periods, court protection against enforcement in appropriate cases and possible legal aid. Public debt follows a separate institutional and financial path. The Direction de la Dette Publique (DDP), the Direction Générale du Trésor et de la Comptabilité Publique (DGTCP) and the Comité Technique de la Dette Publique (CTDP) publish or manage information on debt stock, debt service, guarantees and arrears. The DDP report for the first quarter of 2026 recorded central-government debt of KMF 219,765 million. The 2025 debt-to-GDP ratio was 27.6%; external debt represented KMF 180,354 million, or 82.07%, and domestic debt KMF 39,411 million, or 17.93%. Debt service in the first quarter of 2026 was KMF 1,287 million, and no new commitments were recorded in that quarter. Meridian replaced CSDRMS as the debt-management system. The January 2026 IMF and World Bank assessment classified Comoros as having a high risk of external and overall debt distress. Medium- and long-term debt remains sustainable only conditionally on fiscal consolidation, concessional financing and no additional non-concessional borrowing. Legacy and external arrears in mid-2025 were about 0.5% of GDP. Recurrent liquidity and cash-management problems, the absence of market access, a narrow revenue and export base, and climate or other external shocks increase public-debt vulnerability. Public debt therefore cannot be assessed in the same way as a household loan: the relevant questions include government revenue, financing terms, arrears, guarantees and the effect on public services and future budgets.