“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