Short-Term Bank Credit Skyrockets in Tunisia
Since December 2010, short-term bank credit has multiplied by 3.7 times, reaching 55,049 MTND by the end of March 2025 figure is simply enormous for an economy like ours. This staggering increase is recorded despite the absence of significant GDP growth throughout this time. Interest rates generally followed an upward trend, alternating between restrictive monetary policy cycles and fluctuations, with a drop in 2017.
At the beginning of the revolution, the acceleration was due to exceptional expenses incurred by companies to cover the costs of integrating personnel and higher operating expenses. During this period, most people believed in a quick recovery, which prompted managers to take on more. However, with the onset of an inflationary cycle and economic stagnation, credits turned into a heavy burden. Not only did the cost increase, but a significant portion only covered the expenses of old loans reaching maturity. This vicious cycle continues to this day, with a pause during the health crisis.
The impact is clear when we look at the figures for medium- and long-term loans, which have only increased by 2.18 times over the same period, with a total of 35,255,453 MTND. The sole observation of this structure explains everything: financial charges consume the essential operating results of companies. They no longer invest or recruit. With a higher employment cost, increasing operational expenses, and tax pressure, how can growth restart? Access to financing is the basis of all value creation, especially in a entrepreneurial tissue like Tunisia's, where undercapitalization is the rule.
