Can Tunisia handle public sector strike?
While the Central Bank of Tunisia recommends taking exceptional measures to deal with the alarming economic situation by imposing new rules on banks to measure the ability to meet their engagements, there is fear the country could go bankrupt especially as labor unions are threatening to go on strike.
TUNIS, Tunisia — The Central Bank of Tunisia denied in a statement Sept. 6 any intention to reduce funding and loans granted to banks, specifying instead that it seeks to put an end to consumer loans that banks give to borrowers.
The statement comes after the Central Bank announced June 18 that it will issue a circular forcing banks to respect a new credit-deposit ratio not exceeding 110%, given that most banks have already significantly exceeded this ratio. The announcement caused concerns among banks, which pushed the Central Bank to issue the September statement.
This measure aims at reducing the volume of refinancing and controlling inflation. Banks would also be required to limit the allocation of consumer loans.
The Central Bank explained in its September statement that it seeks, through this circular that is still in its draft form, to push the banks with high credit-deposit ratios only — reaching 150% for some banks — toward a gradual decrease by 3% every three months. The statement specified that the new measure will not include banks that have a ratio of 110% and less.
