Circular to Banks and Financial Institutions No. 2020-06 of March 19, 2020

Circular to Banks and Financial Institutions No. 6 of 2020 Dated March 19, 2020 Subject: Exceptional measures to support institutions and professionals.

The Governor of the Central Bank of Tunisia, Having examined Law No. 53 of 2016 dated April 6, 2016, concerning the establishment of the Tunisian Central Bank's basic system; Having examined Law No. 84 of 2016 dated July 11, 2016, concerning banks and financial institutions; Having examined Central Bank Circular No. 84 of 1944 dated December 6, 1944, concerning the definition and classification of loans and their refinancing, as amended and aligned with subsequent provisions; Having examined Central Bank Circular No. 68 of 1981 dated December 14, 1981, concerning risk capital and refinancing of commitments, as amended and aligned with subsequent provisions; Having examined Central Bank Circular No. 11 of 2014 dated November 1, 2014, concerning the credit-to-deposit ratio; And upon the opinion of the Banking Supervision Committee No. 6 of 2016 dated March 18, 2016;

Has decided the following: Article 1: Banks and financial institutions shall implement all necessary measures aimed at supporting institutions and professionals in light of the COVID-19 pandemic.

Article 2: Banks and financial institutions shall postpone the installments of loans granted to institutions and professionals, due initially or subsequently, for a period extending from March 1, 2020, to September 30, 2020, and adjust the repayment schedule accordingly. This measure applies to professional loans granted to classified craftsmen as of December 31, 2018, under Article 4 of Central Bank Circular No. 68 of 1981 dated December 14, 1981. This shall be implemented upon submission of a request by any means producing written effect. Banks and financial institutions may grant new deferrals to beneficiaries following the postponement of loan installments. The support measures described in this Article shall not be considered as a restructuring of loans, and the postponement period specified herein shall be taken into account when calculating the outstanding amounts for beneficiaries of support measures under this Article.

Article 3: Banks and financial institutions may withdraw the measures mentioned in the first paragraph of Article 2 from this Circular regarding classified craftsmen as of December 31, 2018, under Article 4 of Central Bank Circular No. 68 of 1981, based on an assessment of the customer's status. The postponement period shall be taken into account when calculating outstanding amounts for beneficiaries of support measures under this Article.

Article 4: The provisions of Articles 2 and 3 of Central Bank Circular No. 11 of 2014 dated November 1, 2014, concerning the credit-to-deposit ratio, shall apply exceptionally as of the first quarter of 2020, with the following modifications:

• Banks shall calculate the ratio based on the total amount of loans granted in dinars, excluding 20% of the postponed loan amounts in dinars as specified in Annex No. 1 to this Circular, and including 5% of the postponed loan amounts in foreign currency as specified in Annex No. 1 to this Circular, plus new loans granted in dinars and foreign currency during the quarter, plus other customer deposits in dinars and foreign currency.
• The calculation elements for the credit-to-deposit ratio are as follows: Numerator: Total loans granted to customers in dinars, excluding postponed installments in dinars specified in Annex No. 1 to this Circular. Denominator includes the following elements:
  • Loans granted in dinars and foreign currency to non-resident banks installed in Tunisia;
  • Other amounts due to customers in dinars;
  • Deposit certificates;
  • Special resources in dinars and foreign currency;
  • Other borrowings of non-resident banks installed abroad in dinar and foreign currency;
  • Other borrowings of resident banks in dinar and foreign currency;
  • Other contracted borrowings in dinar and foreign currency. Banks shall notify the Central Bank of Tunisia of the calculated ratio indicators according to Annex No. 2 to this Circular. The provisions of Articles 2 and 3 of Central Bank Circular No. 11 of 2014 concerning the credit-to-deposit ratio shall apply as of April 3, 2020.

Article 5: Banks and financial institutions shall notify the Central Bank of Tunisia monthly via the message exchange system, listing beneficiaries of exceptional support measures (EXCEL file), according to the table included in Annex No. 1 to this Circular.

Article 6: This Circular takes effect upon its publication. The Governor, Marouane Abbassi

Annex No. 1 to the Circular to Banks and Financial Institutions No. 6 of 2020 dated March 19, 2020 concerning exceptional measures to support institutions and professionals List for the month of ...: Bank or Financial Institution: ... (In thousands of dinars)

| Tax ID / National Identity Card | Customer | Classification as of December 2018 | Postponed Installments (Interest) | Postponed Installments (Principal) | New Loans Granted (Dinar) | New Loans Granted (Foreign Currency) | Total |

Annex No. 2 to the Circular to Banks and Financial Institutions No. 6 of 2020 dated March 19, 2020 concerning exceptional measures to support institutions and professionals Bank: Calculation elements for the "Credits/Deposits" ratio as of …….. (In thousands of dinars unless otherwise indicated)

Code RCM00	Label	Quarter T-1	Quarter T
AC030000000000	Customer claims in dinar postponed under this circular
AC030000000001	Customer claims in dinar net of postponed installments under this circular (1)
PA030000000000	Customer deposits and balances in dinar (2)
PA030900000000	Other amounts due to customers in dinar (3)
PA040101000000	Deposit certificates (4)
PA040300000000	Special resources in dinar and foreign currency (5)
PA020102010900	Other borrowings of non-resident banks installed in Tunisia in dinar and foreign currency (6)
PA020102020900	Other borrowings of non-resident banks installed abroad in dinar and foreign currency (7)
PA020101090000	Other borrowings of resident banks in dinar and foreign currency (8)
PA040209000000	Other contracted borrowings in dinar and foreign currency (9)
Dénominateur (10)=(2)-(3)+(4)+(5)+(6)+(7)+(8)+(9)	Denominator (10)=(2)-(3)+(4)+(5)+(6)+(7)+(8)+(9)
Ratio « Crédits/Depôts » (11)=(1)/(10) (en %) (12) (13)	Ratio "Credits/Deposits" (11)=(1)/(10) (in %) (12) (13)
Ratio Cible du trimestre (en %) (14)	Target ratio of the quarter (in %) (14)
Excédent des créances ((13)-(14))*(10)	Excess of claims ((13)-(14))*(10)