Regulatory Alerts2025-01-29
Circular to Banks and Financial Institutions No. 2025-01 of January 29, 2025
The Central Bank of Tunisia issued Circular No. 2025-01 to mandate a standardized methodology for calculating collective provisions on commitments classified as 0 and 1, replacing previous annexes with updated migration rates, standard provisioning percentages, and reporting templates. Banks and financial institutions must apply sector-specific increase and provisioning rates to homogeneous customer groups, recalculate historical average migration rates annually over a seven-year window (excluding 2020), and submit detailed adjustment reports to the regulator. The updated framework takes effect upon publication, applies retroactively to fiscal year 2024, and requires financial institutions to obtain prior regulatory approval if they opt for lower rates based on a justified internal assessment.