Approval of Debt Relief Bill
The Tunisian Parliament has approved a bill granting total exemption from interest and late payment penalties, as well as debt rescheduling, to all individuals and institutions with unpaid debts to the Tunisian Solidarity Bank (BTS) with a repayment deadline prior to December 31.
Opposition from the Minister of Finance
Despite opposition from the Minister of Finance, Mechket Salama Khaldi, who argued that this proposal would "affect the bank's financial resources and, consequently, its ability to grant loans," the bill was approved by 60 deputies.
Key Provisions of the Bill
The approved article stipulates that, on an exceptional basis, all individuals and institutions with debts to the Tunisian Solidarity Bank and a repayment deadline prior to December 31 will benefit from:
- Total exemption from interest and late payment penalties
- Rescheduling of the principal debt over a maximum period of 5 years with the initial interest rate
The bill also provides that files will be processed on a case-by-case basis according to a recovery policy defined by the bank's Board of Directors, which will be responsible for its implementation. Interested parties must submit their applications to benefit from this measure by December 31, 2026, at the latest.
Minister's Concerns
The Minister of Finance expressed concerns that the article lacks specific details on the beneficiaries (individuals or legal entities) and whether it applies to defaulting debtors in repaying the principal debt, interest (conventional or late), or all borrowers from the bank. She emphasized that with the approval of this article, the Tunisian Solidarity Bank would, as of January 1, 2026, waive all debts without restrictions or conditions, making it unable to finance individuals who do not have access to other sources of funding.
Existing Practices
Regarding the provision of the article related to the examination of files on a case-by-case basis, the Minister clarified that the bank already concludes settlement agreements on a case-by-case basis, is aware of the borrowers' situation, and takes necessary measures to waive late payment penalties.
Outcome of the Session
The session was adjourned at the request of the Minister of Finance, following the approval of the article by 60 votes in favor, 20 abstentions, and 25 votes against.
