Central Bank of Tunisia Reveals Economic Trends
Increase in Credits to the Economy
The Central Bank of Tunisia has released figures showing an increase in credits to the economy. In the first half of 2024, additional financing to the economy totaled 2,494 MTND, a 2.2% year-over-year increase. This growth rate is faster than in 2023, when credits increased by 2,008 MTND over the same period.
Breakdown of Financing
To understand this dynamic, it's essential to examine where these funds were allocated. In reality, 1,684 MTND of these financings took the form of overdrafts on current accounts. In other words, this is due to companies' cash flow shortages, which forced them to turn to banks for overdraft authorizations at a two-digit interest rate. These funds did not serve investment purposes but rather covered current expenses. This situation has worsened compared to 2023, when the increase was only 671 MTND. Next, immobilized credits accounted for 1,168 MTND.
Decrease in Discounted Portfolio
Meanwhile, the discounted portfolio balance with banks continued its downward trend, decreasing by 1,117 MTND. This reflects a decrease in circulating invoices, which is logical given the economic slowdown. It may also indicate a cost issue, as factoring is the most expensive financing source, or that more operations are shifting to the underground economy.
Sectoral Breakdown
By sector, the services sector absorbed the majority of additional credits, totaling 1,116 MTND, followed by industry with 888 MTND, and agriculture with 118 MTND.
Individual Credits
As for individuals, credits increased by 263 MTND, a modest figure indicating stagnation in consumption, including in the real estate sector.
Conclusion
These statistics are reflected in the growth rate and job creation. The change begins, inevitably, with a more efficient and effective allocation of resources.
