The Governor of the Central Bank of Tunisia (BCT) on Thursday stressed the need to adopt an economic recovery plan for the next stage, which will be based on an innovative financing mechanism for the restructuring of companies that suffered from the repercussions of the coronavirus pandemic.
This economic recovery plan focuses on strengthening the equity of companies and adopting an innovative mechanism to support companies with large production and employment capacities, he added during a hearing session devoted to him by the House of People Representatives (ARP)’s Finance, Planning and Development Committee.
This session was dedicated to the examination of the role of banks in the financing of companies having suffered the effects of the pandemic as well as the role of the BCT in the encouragement of the banking sector to play its role in the financing of the economy.
The recovery plan aims, in particular, to strengthen financial stability, preserve the economic fabric and contribute to the reduction of the trade deficit, to strengthen the attributes of financial discipline in the management of companies and to solve the problem of bad debts of banks, he said.
The plan will enable the state to preserve jobs, improve the business climate, growth and financial indicators of banks as well as institute benefits for investors in the public and private sectors.
The proposed economic recovery plan is based on the partnership between the various operators: state, banks, donors and foreign partners as well as on the orientation of the private sector towards investment in restructuring funds, he explained.
Abassi emphasised the importance of fiscal and financial measures to accompany and the need to direct all initiatives and funds to this mechanism to ensure its success.
He proposed to entrust the Caisse des dépôts et consignations with the elaboration of this plan, which will offer to finance of between 1 and 3 billion dinars.
The BCT will soon begin the elaboration of the technical framework and the implementation plan of the innovative financing mechanism, subject to consultation with the banking sector.
The official warned the government against not adopting decisive measures in the coming months, which will favour the triggering of a serious and unbearable financial crisis.
“Such a failure on the part of the government could also increase the rate of business failures, especially as September marks the end of the deferral of credit repayments, which will have a harmful impact on the soundness of the banking sector”, he said.
The country is facing several challenges due to the lack of political and economic visibility
Besides, the country is facing several challenges due to the lack of political and economic visibility and the continued pressure on economic indicators, according to the BCT Governor.
The weakness of current economic transactions, whose value has not exceeded 2 billion dinars, has created a crisis of confidence and generated mistrust among business leaders and liquidity problems, he added.
Public companies are going through a financial crisis like the Chemical Group, whereas they used to provide liquidity of around 7 billion dinars to banks in 2008.
For him, it is impossible to continue the financing and structuring of companies during the next stage given their high level of indebtedness.
The credits granted by the banks are in a continuous rise reaching 16% of their commitments against 6% in 2009, he said.
Source: TAP News Agency