Tunisia: New regulations to develop microfinance sector
A new law has just been adopted in Tunisia by the Finance Ministry.A new law has just been adopted in Tunisia by the Finance Ministry.
It is being introduced in a post-revolution environment, with decreasing microfinance activity, at a time when around a third of microfinance associations are concentrating on credit collection without granting new loans, La Presse newspaper reports.
A recent assessment study on the financing mechanisms of the microenterprises in Tunisia created by the Employment and Training Ministry reveals the collection rate is now at 84 percent, as opposed to 89 percent last January.
It is to reverse this trend and stimulate the sector that the new law has been created.
It will contribute to better organisation among microfinance institutions (MFI), promote regional development and help lower income populations access financial services, Director in Charge of Financing at the Finance Ministry Souhir Taktak told Investir en Tunisie newspaper.
MFIs will be able to sell several microinsurance products in order to target a larger number of customers and broaden the spectrum of their activities.
The law also includes the creation of a new supervision authority that will ensure this new legal framework is applied, as well as monitor the Tunisian microfinance sector.
Tunisia Solidarity Bank, created in 1997 to develop microfinance, is included in these reforms.
Its objective is to finance promoters that do not have real guaranties by granting credits on the basis of their professional qualification and the project profitability.