Lawmakers Propose Bill to Cap Bank Guarantees in Tunisia
Members of the Tunisian Parliament's Assembly of People's Representatives (ARP) have introduced a bill aimed at setting a legal cap on guarantees required for bank loans.
Addressing Excessive Guarantees
This legislative initiative comes as the Tunisian banking system faces significant challenges related to excessive conditions imposed by banks, with guarantees often exceeding 150% of the borrowed capital (capital and interest).
Key Provisions
The bill obliges banks to value guarantees and notify clients, specifying that any contradictory contractual clause would be annulled. The regulatory authority will be empowered to define cases, deeming this necessary to protect borrowers and strengthen their confidence in the banking system**.
Balancing Interests
The bill primarily aims to organize bank loan guarantees, ensuring a balance between the interests of financial institutions and borrowers. This measure also seeks to guarantee the sustainability of the financial and banking system and support economic growth.
Recap: ANPME's Call for Reform
The National Association of Small and Medium-Sized Enterprises (ANPME) has already called for the revision and modernization of the legislative framework governing SME financing, to guarantee equity and efficiency in directing credits to their legitimate beneficiaries, particularly those classified as 0, 1, and 2.
ANPME's Concerns
In a statement published on April 8, the association voiced concerns over the difficulties faced by SMEs, despite their crucial role in economic recovery and achieving sustainable development.
