New check law will negatively impact Tunisian businesses

University teacher, consultant and accountant Sofiène Weriemi returned to Tunisia on Thursday, August 29, 2024 for financing.

« The topic of financing has always been a topic of ink in Tunisia. Today, the savings rate has fallen, the economy and finance rely mainly on bank credit, and the financing rate of the stock market, for example, is negligible. At the same time, the financing needs of the state budget are large, mainly relying on government bonds and local bank financing. All this has led to a decline in financing, especially for individuals and companies in the private sector (whose risk rate has increased given the situation in the country and the economic stagnation). The monetary authorities, who have expressed their position, recognize this fact. “concern“At a recent regular meeting ”, he said in a telephone interview with Manel Gharbi on Express FM’s Expresso show.

And added: At the same time, financing costs have soared, with bank loan interest rates ranging from as low as 10% to as high as 12.2%. For example, the average leasing rate (the formula for enterprise appreciation) in the second half of 2023 reached 13.83%; the average interest rate for long-term loans and short-term management credit was 10.19% (TMM+2) ».

In addition, he also mentioned a new obstacle from February 2025, namely the entry into force of the new check law, which will transform checks from a payment tool into a managed credit, bringing a breath of oxygen to businesses.

Mr. Veremi explained that companies need financing to produce and cover working capital. Without this, there are two consequences to worry about: the price of products will increase, causing inflation, and some companies will file for bankruptcy altogether, affecting all their chains (suppliers and customers).

For him, it is necessary to ensure that investment loans, rather than consumption loans, are financed at preferential rates. Without this, the solution can only be monetary and through the Central Bank of Tunisia, specifically through the key interest rate.

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