Tunis — The Government had decided to create an authority bringing together major representatives of the production apparatus (banks, companies and employees) to ensure continuous improvement of quality and governance in these institutions, Minister in charge of Economic Files Ridha Saidi announced Thursday.

"This state-led authority will be tasked with fostering ties between all these representatives," said Mr. Saidi at a conference on "Financing Companies Facing Requirements of Good Governance."

Governor of the Central Bank of Tunisia Mustapha Kamel Nabli said the Central Bank of Tunisia (BCT) will implement from July 1, 2012 the circular on the consolidation of rules of good governance in bank institutions (dated May 20, 2011).

According to this circular, "the banking system will be endowed with a new mechanism based on balance between different bank services, independence of its Executive Board whose members will be increased and the introduction of new audit, follow and risk management bodies," he added.

"The burden of bad debt in Tunisian banks has reached to date 13.4% which is a high rate compared to international standards. This rate reflects a bad governance not only in banks but also in companies which have to comply with transparency standards by providing to banks reliable and pertinent information that help them in decision-making," said the BCT Governor.

According to Mr. Moez Joudi, Chairman of the Tunisian Association of Governance (ATG), the State's intervention in matters of governance is mandatory, recommending, in this regard, the establishment of a good governance practices code.

Chairman of the Tunisian Citizen Enterprises Confederation (CONECT) Tarak Cherif said the revival of investment and the preservation of interests of companies and financial institutions can only be made through a win-win partnership between these parties, through new relationships based on transparency and good governance.