Tunisian State to finance Fund for the restructuring of the banking sector
The Fund for the restructuring of the banking sector (Fonds de restructuration du secteur bancaire) will be financed by the Tunisian government, it was announced last week.The Fund for the restructuring of the banking sector (Fonds de restructuration du secteur bancaire) will be financed by the Tunisian government, it was announced last week.
It will be funded by the sale of the State's minority stakes (two to 20 per cent) in eight banks of 12 institutions whose capital is partially or completely public, said minister of finance and economy Hakim Ben Hammouda, quoted by the newspaper La Presse.
This fund will support the restructuring of public banks in relation to the management of classified loans, the revision of their workforce and their market positioning. It will also support comprehensive reforms, the minister revealed.
" The real challenge for Tunisian banks remains the reform of their information systems. It will require much investment, which is expected to be sourced from other foreign banks, well ahead in this area," he said.
The fund is part of a major reform program from the government to restructure the country's financial system. It remains one of the main handicaps of the Tunisian economy, and its fragility was one of the principal reasons for the recent downgrade of the country’s sovereign rating, according to the African Economic Outlook 2014 report from the African Development Bank.
The structural vulnerabilities that already affected the banking sector before the revolution (undercapitalisation, weak bank supervision and inadequate risk management) persist despite the introduction of reforms.