Ahmed Karam, former president of the Tunisian Professional Association of Banks and Financial Institutions, said today, December 29, 2020, during the EcoMag program, that this year has been difficult for the banking sector, noting that its income has been affected. at all levels. He added that Tunisian banks have allocated 2.9 billion dinars to finance coaching and assistance loans to businesses affected by Covid-19, noting that half of the loans have been disbursed.
Ahmed Karam also explained that Tunisian banks have managed, despite the difficult situation, to maintain their productivity, but that in return their income will be affected, adding that there is an expected increase in operating expenses from 6 to 7 %. He indicated that Tunisian banks have supported the state’s efforts in the fight against the Coronavirus by financing it with 120 million dinars.
In the same vein, the guest of EcoMag added that the banks have created new allocations in order to maintain their solidity while the Central Bank prepares a circular defining these provisions. He added that despite the improvement of the situation by the end of the year, the income of banks will decline by 30 to 40%. Regarding the continuation of the payment of surpluses, he said this was linked to the extension of the loan repayment period, adding that the banks were supposed to cancel these surpluses, but they were unable to do so.
In addition, Ahmed Karam explained that banks are ready to study the situation of customers, especially those affected by Covid. He also indicated that some banks, especially state-owned banks, cannot grant exceptional privileges if they do not receive the approval of the supervisory authority, which is why they ask their customers to pay the excess.
Ahmad Karam similarly said that there are additional measures due to the health crisis that the Central Bank circulars did not accompany. He added that the banks’ demand for their customers to pay the surpluses was mainly due to administrative and regulatory procedures. And to point out that the Ministry of Finance had not given the banks the initial approval in this regard.
Ahmed Karam also indicated that the Central Bank has exceptionally authorized the recording of such interest in the income of banks even if they are not paid, adding that it is unreal income resulting from rescheduling, and so collective allowances have been prepared on various loans to compensate for this income.
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