Tunisia: Financial sector feeling effects of European debt crisis
A new report from the Central Bank of Tunisia (BCT), published on Thursday (November 17th), has revealed the impact the European financial crisis is having on the Tunisian banking sector.A new report from the Central Bank of Tunisia (BCT), published on Thursday (November 17th), has revealed the impact the European financial crisis is having on the Tunisian banking sector.
Growth in economic activity is declining due to a slowdown in exports, a decrease in revenue from touristic activities and a contraction of foreign and domestic investment, explains the report, published by Xinhua news agency.
This situation has increased the level of external payments made by Tunisia.
There has also been a drop in banks' liquid assets in November, prompting action from the BCT so the Tunisian banking system continues to finance businesses.
According to a report from the World Bank on the strategic partnership with Tunisia for 2010-2013, the high costs of bank loans and difficulties accessing credit are hindering business growth.
On average, Tunisian banks are asking for guaranties of between 155 percent and 167 percent of the loan.
The report therefore recommends the development and diversification of financing mechanisms in Tunisia.