Circular to Banks No. 2020-17 of July 28, 2020

1 CIRCULAR TO BANKS No. 2020-17 of July 28, 2020 Subject: Determination of the procedures and conditions for unlocking amounts related to the benefit of state coverage of interest rate bonuses up to two points on new management and operating credits granted to establishments and professionals operating in the tourism and artisan sectors, including tourist management companies. The Governor of the Central Bank of Tunisia, Having regard to Law No. 2016-35 of April 25, 2016, establishing the status of the Central Bank of Tunisia, Having regard to Law No. 2016-48 of July 11, 2016, on banks and financial institutions, Having regard to Government Decree-Law No. 2020-6 of April 16, 2020, prescribing fiscal and financial measures to mitigate the repercussions of the spread of the Coronavirus "Covid-19", as amended by Government Decree-Law No. 2020-22 of May 22, 2020, prescribing additional support measures for the cash flow of enterprises affected by the spread of the Coronavirus "Covid-19" and notably its Article 11, Having regard to Government Decree No. 2020-308 of May 8, 2020, establishing the criteria for defining affected enterprises and the conditions for their eligibility under the provisions of Government Decree-Law No. 2020-6 of April 16, 2020, prescribing fiscal and financial measures to mitigate the repercussions of the spread of the Coronavirus "Covid-19". Having regard to the Order of the Minister of Finance dated July 23, 2020, establishing the procedures and conditions for benefiting from the state coverage of interest rate bonuses on new management and operating credits granted by banks to establishments and professionals in the tourism and artisan sectors, including tourist management companies, Having regard to Circular No. 2008-06 of March 10, 2008, from the Central Bank of Tunisia regarding the Information Central, Having regard to Circular No. 2020-12 of May 28, 2020, from the Central Bank of Tunisia regarding exceptional support measures for enterprises and professionals to address the repercussions of the COVID-19 pandemic crisis, Having regard to Opinion No. 2020-17 of July 28, 2020 from the Compliance Control Committee. Decides:

Article 1 - An account named "State Coverage Account for Interest Rate Bonuses on Management and Operating Credits Granted to Establishments and Professionals in the Tourism and Artisan Sectors Affected by the Spread of the Coronavirus 'Covid-19'" is opened on the books of the Central Bank of Tunisia, in accordance with Article 4 of the aforementioned Order of the Minister of Finance.

Article 2 - The resources of the account referred to in Article 1 are used for paying amounts resulting from the state coverage benefit of the difference between the interest rate of new management and operating credits and the average money market rate, up to a limit of two points, in favor of banks, for credits granted during the period between March 1, 2020, and end of March 2021, to establishments and professionals in the tourism and artisan sectors, including tourist management companies affected by the spread of the Coronavirus "Covid-19" and having benefited from the guarantee mechanism provided for in Article 11 of the aforementioned Government Decree-Law No. 2020-6, provided that the profit margin applied by banks does not exceed 2%.

Article 3 - The bank submits, after approval of the management and operating credit grant, a file to the Central Bank of Tunisia comprising obligatorily:

• a copy of the eligibility ticket for the measures provided by Decree-Law No. 2020-6 obtained through the electronic platform created by Government Decree No. 2020-308 aforementioned.
• a copy of the registered credit contract.

Article 4 - The unlocking of amounts resulting from the bonus benefit in favor of banks on the resources of the account cited in Article 1 of this circular takes place after submission of a drawing request comprising the bank's account statement and a detailed report indicating the recovered amounts and the amounts resulting from state coverage of interest rate bonuses up to two points, prepared in Excel format according to the model in Annex 1 of this circular and transmitted to the Central Bank of Tunisia via the Data Exchange System, within the first ten working days of each month.

Article 5 - The unlocking of amounts for the benefit in favor of banks occurs only after each due installment is repaid by the client benefiting from the new management and operating credits. For amounts paid regarding interest due before the entry into force of the provisions of the aforementioned Order of the Minister of Finance, beneficiary clients may request their refund within the limit of this benefit. The bank must in this case submit to the Central Bank of Tunisia a request from the concerned client along with supporting documents proving payment of said amounts, in accordance with the report in Annex 1 of this circular. The amounts are paid to the bank, which is responsible for transferring them to the concerned client within two working days following the date of crediting to the bank's accounts.

Article 6 - The benefit remains valid in case of repayment of one or more installments of the new management and operating credits before the deadlines set in the amortization schedules, based on an amendment to the credit contract, a copy of which is communicated by the bank to the Central Bank of Tunisia.

Article 7 - The benefit is canceled when the beneficiary enterprise incurs a delay in repaying three successive credit installments or if the bank initiates a payment action regarding the credit subject to the aforementioned benefit. The concerned bank must, in these cases, notify the Central Bank of Tunisia via the Data Exchange System according to the model established in Annex 2 of this circular.

Article 8 - Banks declare monthly to the Information Central the new management and operating credits subject to the benefit in accordance with the credit form codes specified in Annex 3 of this circular.

Article 9 - Banks must instruct their statutory auditors to prepare an annual report on compliance with the provisions of this circular, including a statement of granted benefits detailed by each beneficiary client. This report is transmitted to the Ministry of Finance and the Central Bank of Tunisia within a period not exceeding three months from the end of each year.

Article 10 - This circular enters into force as of its publication date. The Governor, Marouane El ABASSI

6 Annex No. 1 to the Circular of the Central Bank of Tunisia No. 2020-17 of July 28, 2020 Detailed Report of Amounts Resulting from State Coverage of the Difference Between the Interest Rate of New Management and Operating Credits and the Average Money Market Rate up to Two Points

Eligibility Ticket Reference	Client Tax ID	Client Company Name	Credit Amount	Installment Repayment Date	Applied Margin	Interest Rate	Installment Amount for Interest	State Coverage Amount	Totals

7 Annex No. 2 to the Circular of the Central Bank of Tunisia No. 2020-17 of July 28, 2020 List of Clients Who Recorded a Delay in Repaying 3 Successive Installments or Were Subject to a Payment Action

Client Beneficiary Tax ID	Client Company Name	Credit Amount	Date of Unrecovered Installment / Or References of Payment Action	Amount of Unrecovered Installment
1)	1)	2)	2)	3)
Or references of payment action: - Case No.: - Date of Action Initiation: - Court Seized:	Total

8 Annex No. 3 to the Circular of the Central Bank of Tunisia No. 2020-17 of July 28, 2020 Codes for Forms of New Management and Operating Credits Granted to Establishments and Professionals in the Tourism and Artisan Sectors, Including Tourist Management Companies, Concerned by the State Coverage Benefit of Interest Rate Bonuses in accordance with Article 11 of Government Decree-Law No. 2020-6 of April 16, 2020, as amended by Government Decree-Law No. 2020-22 of May 22, 2020

KFCRED	LIBELLE (Description)
307	Exceptional COVID-19 Financing Bonus 2%