Day: July 5, 2023

“The banks’ profits from long-term loans to the Tunisian State posted a 58.12% rise over the past decade. However, these banks could be exposed to capital risks if the State fails to repay,” said the Association de Lutte contre l’Économie de Rente en Tunisie (ALERT). The overall amount of Fungible Treasury Bond (BTA), used by banks as a tool for long-term lending to the State, reached TND 23,908.85 billion from 2011 to 2022, while the output of these BTA amounted TND 1,894.93 billion, ALERT indicated at a recently held meeting. The association considered that the earnings made by Tunisian banks during this period (58.12%) far exceeded those made by similar banks in Morocco (23.6%) and France (10.23%). It also warned that the expected entry into force of IFRS 9 Financial Instruments would have a negative impact on banks if they continue to finance the State and distribute profits to shareholders. These figures show the size of the banks’ profit margins achieved through subscriptions to treasury bills, drawing on the State’s need for cash to fill the budget deficit, which has risen from 3.1% in 2011 to 7.6% in 2022, according to data published by the Finance Ministry. Alert specified that the State’s debts to banks account for 80% of its total own resources. Data published on July 4 by the Central Bank of Tunisia (BCT) revealed that the total of treasury bonds amounted to almost TND 2,446.5 billion, compared to TND 1,926.7 billion in 2022. The same data further show that the BCT’s refinancing volume for banks rose to TND 15,306.5 million in 2023, against TND 9,937.6 million in 2022.

Source: EN – Agence Tunis Afrique Presse

Thirteen Tunisian companies representing the main sectors of the textile and apparel industry in Tunisia (jeans and sportswear, knitted articles, ready-to-wear, leather goods, and accessories) are currently taking part in the “Première Vision” trade show, held from July 4 to 6, at the Paris Nord Villepinte Exhibition Centre. The Tunisian participation, led by the Export Promotion Centre (CEPEX), occupies an area of 174 square meters. «It has showcased a rich and diverse Tunisian offering. The stands of Tunisian companies saw high attendance, demonstrating the interest generated by the know-how and quality of Tunisian products,» stated CEPEX in a press release on Wednesday. Several buyers and contractors have expressed their desire to establish contacts and build relationships with Tunisian companies operating in the textile and apparel sector. Additionally, “other visitors are seeking specific finished products in terms of design, material, and quantity, and wish to find Tunisian partners in this field.” «This gathering provides Tunisian professionals with a benchmark platform for establishing contacts and forging fruitful long-term business relationships with operators, especially from France and Europe, in order to strengthen their exports to key target markets and highlight the innovations, diversity, and quality of Tunisian textile products.” The “Première Vision” trade show is one of the world’s most important events for professionals in the fashion industry, particularly in the six major fields of materials and services for the global fashion market: yarns, fabrics, leather, designs, accessories, and manufacturing. “Tunisia, as the ninth supplier of the European Union in the apparel sector and the second supplier to France, increased its exports to the continent by 21.28% in 2022 compared to the same period in 2021, with a value of pound 2,806 million,” specified CEPEX. “The textile and apparel industry remains the leading manufacturing sector in Tunisia in terms of employment, with over 160,000 jobs, and the number of companies, with 1,822 companies established in Tunisia. This sector greatly benefits from Tunisia’s geographical proximity to the European market, production quality, and the speed and execution of orders.”

Source: EN – Agence Tunis Afrique Presse

The inflation rate eased slightly to 9.3% in June 2023, compared to 9.6% in May, according to a statement released on Wednesday by the National Institute of Statistics (INS) on the ‘Consumer Price Index for June 2023.’ This decline in inflation, despite the monthly increase, is due to the deceleration in the pace of price growth between June and May this year, compared to the same period last year. In fact, a slowdown is observed in the rate of price increase for the “food products” group, decreasing from 0.5% to -0.1%, the prices of the “furniture, household goods, and household maintenance” group, with the rate of growth decreasing from 1.7% to 0.8%, and for the prices of the “leisure and culture” group (from 1.1% to 0.7%). In June 2023, consumer prices increased by 0.4%, compared to a 0.5% rise in the previous month, following the increase in prices for the “clothing and footwear” group by 1.8%, food prices by 0.4%, and prices of restaurant and hotel services by 1.2%. Furthermore, food prices dropped slightly (-0.1%), due to a decline in the prices of eggs (-6.9%), fresh vegetables (-3%), and fresh fruits (-1.1%). On the other hand, there is a rise in prices for sheep meat (+5.4%) in connection with the advent of Aid Al-Idha. The same applies to the prices of mineral water and carbonated beverages, which increased by 0.8%. As for restaurant and hotel services, the growth of 1.2% is mainly explained by the increase in prices for restaurant and café services by 0.9% and hotel services by 3.5%. Additionally, clothing prices increased by 2%, footwear prices by 1.7%, and accessory prices by 0.9%. // Year-on-year price changes Over the course of one year, food prices jumped 15.2% in June 2023. This increase is mainly due to the rise in prices of sheep meat by 36.3%, poultry meat by 28.4%, eggs by 27.5%, edible oils by 21.8%, and beef by 21.3%. The prices of manufactured goods also saw a year-on-year increase of 8% due to the rise in prices of construction materials by 6.8%, clothing products by 9.7%, and household maintenance products by 9.4%. For services, prices increased by 6.4%, mainly driven by the price growth of restaurant, café, and hotel services by 10.3%, public and private transportation services by 16.9%, and financial services by 20.7%. // Core inflation rate decreases to 7.4% The core inflation rate (excluding food and energy) decreased to 7.4% from 7.5% the previous month. Prices of free-market products climbed 10.7% over the year. On the other hand, regulated prices saw a 4.9% rise. Free-market food products experienced a 17.8% rise, while regulated food products increased by 0.8%.

Source: EN – Agence Tunis Afrique Presse

The volume of banknotes and coins in circulation rose on 4 July 2023 to 20,346 million dinars (MD), compared with 17,938 MD on the same day in 2022, recording an unprecedented increase of 13.4%, according to the daily monetary and financial indicators published on Wednesday by the Central Bank of Tunisia (BCT). This remarkable development in the volume of notes and coins in circulation, which represents the equivalent of the volume of coins in circulation outside the banking and financial sector, reflects an increase in the money supply, resulting from the instability of monetary policy in the fight against this scourge and its impact on rising inflation. BCT statistics show that the overall volume of refinancing increased remarkably on 4 July 2023 to 16703.5 MD compared with 11405.6 MD, i.e. an increase of 46.4%. The jump in the overall volume of refinancing is explained by a limited level of liquidity in the banking sector, in parallel with the leap in State bank loans in the form of treasury bills, to 24 billion dinars. State bank loans represent 29% of total bank loans granted to public companies, according to the latest statistics published by the BCT in its note on financial statistics published in April 2023. Lastly, the latest BCT statistics show a decline in interbank transactions on the money market to 949.7 MD on 4 July 2023 compared with 1433.1 MD a year earlier.

Source: EN – Agence Tunis Afrique Presse