Regulatory Alerts2016-12-09
Central Bank of Tunisia Circular No. 2016-07 of December 9, 2016
The Central Bank of Tunisia issued Circular No. 2016-07 to establish the conditions under which it provides financial assistance to solvent but temporarily illiquid banks and financial institutions facing solvency threats. Eligible domestic institutions must submit a recovery plan, obtain prior state guarantees if their solvency is compromised, and secure assets through bilateral agreements subject to haircuts. The assistance carries an interest rate equal to the lending facility rate plus at least 250 basis points, lasts up to three months (renewable up to twelve months), and became effective on April 3, 2017.
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