Bank Credit to Individuals: A Record High of 29 Billion Dinars
The outstanding balance of bank credits to individuals has increased by 361,269 million Tunisian dinars (MTND) since the beginning of the year, reaching a total of 29,082,212 MTND as of September 2024. For the first time, the 29 billion dinar threshold has been exceeded. Over the same period in 2023, the outstanding balance evolved by 712,158 MTND, proving that household debt is approaching its ceiling.
Breakdown by Category
The outstanding balance of consumer credits stands at 4,948,198 MTND, increasing by 248,194 MTND compared to December 2023. Demand for this type of financing remains strong. Despite high interest rates, Tunisians are resorting to debt to finance their expenses or small, unstructured private projects.
Housing renovation credits have totaled 10,838,811 MTND, a rise of 108,108 MTND since the beginning of the year. Again, there has been a deceleration compared to the first nine months of 2023. Small-scale home renovation projects have been impacted by the increase in raw material prices and labor costs. It is worth noting that these credits also serve as consumer credits, especially for small amounts.
Mortgage loans have recorded a slight increase in outstanding balance, reaching 12,886,330 MTND, with a rise of 17,484 MTND. This is another illustration of the stagnation in the real estate sector. In comparison, over the first three quarters of 2023, when interest rates were slightly more favorable, the progression was 254,896 MTND.
Vehicle loans continue to decline, with an outstanding balance of 395,690 MTND. Finally, university credits stand at 13,182 MTND, a niche that is developing but far from influencing or reflecting the overall trend.
Economic Outlook
The overall deceleration is just another reflection of the current economic gloom. Consumption is resisting, but it could do much better.
