BCT Publishes Circular on Guarantee Letter for Foreign Bank Branches

The Tunisian Central Bank (BCT) published a circular on May 27, available here, regarding the guarantee letter stipulated in Article 189 of Law No. 2016-48.

New Requirements for Foreign Bank Branches

The circular states that banks established before the promulgation of the law, in the form of branches belonging to foreign banks with their headquarters abroad, and having a minimum endowment of at least half of the required minimum capital but less than the amount specified in Article 32 of the law, must provide a guarantee letter.

Guarantee Letter Requirements

The guarantee letter must cover the difference between the required minimum capital and the endowment allocated to the branch, in accordance with the model defined by the BCT. The letter "must be deposited with the BCT in its original format and duly signed by the foreign bank." This must be done within a deadline of 2 months from the date of publication of the circular.