Tunisia: Extension of Maturities Will Result in Shortfall for Banks of 600 Md (AFC)

Tunis/Tunisia — The impact of the postponement of maturities of loans granted by banks to individuals, for three months, will result in a loss of income on the net banking product (NBP) of nearly 595 million dinars (MD), for the entire Tunisian banking sector (listed and unlisted), over the average duration of outstanding loans, estimated at 4.8 years, said the stock exchange intermediary, Arab Financial Consultants (AFC), in a note published recently.

The decision to postpone banks' maturities from April 1, 2020 to June 30, 2020 (BCT Circular n°2020-08) is among the measures taken to mitigate the economic repercussions of the general lockdown decided to stem the spread of the coronavirus.

For the listed banks, the loss of income resulting from the postponement of maturities of loans to individuals, could be around 455 MD. BIAT, whose outstanding loans exceed 10 billion dinars could suffer a 75 MD shortfall on its NBP.

The NBP, whose commitments exceed those of BIAT (at the end of 2019), but which is less involved in loans to individuals, could see its NBP affected by nearly 55 MD over the average duration of loans granted.

For the ATB, the proportion of the bank's credits to individuals represents only 17% of its total commitments, making it the rated bank least exposed to individual credits.

The potential shortfall for the ATB could exceed 20 MD, according to the AFC.

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