Morocco's Ministry of Economy and Finance has issued a decree reducing the maximum interest rate for loans granted by direct shareholders from 2.53% to 2.21% for 2017. Interest on loans exceeding that rate is generally non-deductible. In addition to the interest rate limitation, Morocco also disallows the deduction of interest expense for loans from shareholders if the capital of a company has not been fully paid in and where the debt-to-equity ratio exceeds of 1:1.