Tunisian private banks have ceased to grant loans over 15 years of age in order to preserve their profitability after the entry into force, in January, of a new regulation imposing a reduction of 50 % of interest rates on certain fixed rate credits and compulsory uninteresting loans, reports Reuters.
A banking framework confirmed that it has received verbal instructions in this direction, specifying that this approach aims to avoid any written trace that can expose banks to sanctions. Two other officials indicated that this decision limits financial risks and protecting the distribution of dividends to shareholders.
The Tunisian banking sector, already under pressure, has 19 private banks, dominated by Biat and Attijari Bank, as well as four major public banks. According to Fitch Ratings, the new regulation could reduce the annual profits of banks by 11 %. In addition, the increase in profits tax, which will drop from 35 % to 40 % in January 2025, risks increasing pressure on the sector.
Mohamed Souilem, financial analyst and former director of tax policy at the Central Bank of Tunisia, believes that this long -term loan suspension could strongly complicate the access of Tunisians to real estate credits and further weaken a banking sector already in difficulty, adds Reuters.
Faced with economic tensions, President Kaïs Saïed recently criticized banks, denouncing their excessive margins and the high cost of their services. He also suggested a reform of the central bank to allow the State to borrow directly from it, an option that experts deem risky due to its potential inflationary impact, recalls the same source.
