Recent Law Aims to Reduce Interest Rates on Long-Term Loans, Bringing Hope to Small and Medium-Sized Enterprises
The recent introduction of Law No. 41-2024, with its Article 412 ter, aims to reduce interest rates on long-term loans, offering a glimmer of hope for many borrowers, particularly small and medium-sized enterprises (SMEs).
This measure, applicable to loans with a duration of over seven years, concerns loans that have already had three years of repayment, with interest rates exceeding 8%. Borrowers are encouraged to submit a request to their bank, which must respond within 15 days. This initiative could alleviate the burden of debt and boost economic activity, particularly in a context where SMEs are struggling to develop due to high financial charges.
However, the financing situation in Tunisia is delicate. The economic context, characterized by a declining savings rate, forces economic actors to rely more heavily on bank credits. This will consequently lead to an increase in financing costs, making it even more difficult for businesses to access the necessary resources. They will therefore be forced to face leasing rates approaching 13.83%.
Without adequate support, the increase in costs could lead to price hikes for consumers, which could eventually cause difficulties for businesses.
Furthermore, the upcoming implementation of new legislation on checks in 2025 is likely to further complicate the situation for businesses. This law, which transforms checks into credit instruments, could exacerbate financial challenges.
In this uncertain climate, the question arises as to whether measures like reducing interest rates are sufficient to balance the need for relief for SMEs in the face of new constraints imposed by legislation and economic reality.
