Tunisia's Treasury Bills: A Declining Trend
Treasury bills are one of the most widely used negotiable securities in Tunisia, known for their utility in meeting short-term treasury needs. As a result, the applied rates are high. They are fixed and freely determined for maturities of one year or less, and fixed or variable for issues with a duration of more than one year (up to a maximum of 5 years).
As of the end of 2022, the outstanding amount of these securities was 1,121.5 billion Tunisian dinars (MTND), but it has since decreased to 618.7 MTND as of the end of June 2025. This downward trend has been ongoing for three years, indicating that this instrument has relatively lost its attractiveness.
This decline can be attributed to three factors. Firstly, the high cost of treasury bills has limited their use to intra-group operations or as a last resort financing option. In contrast, short-term loans or overdrafts are much less expensive, especially for companies that benefit from banking facilities.
Secondly, treasury bills rely primarily on the financial solidity of their issuers. Demonstrating solvency and economic stability is essential to attract subscribers. However, few companies can meet these criteria, and the lack of trust among economic agents has reduced the number of potential investors.
Thirdly, treasury bills face competition from safer investments offering better returns, which are also attracting investors. Sovereign debt securities and Undertakings for Collective Investment in Transferable Securities (UCITS), for example, represent less risky and more profitable alternatives. Why, then, invest in treasury bills, which carry a risk of non-repayment?
All indicators point to further declines in the coming months. However, a rebound is expected when interest rates decrease significantly and companies accelerate their investments and stockpiling.
