Circular of the BCT to Banks and Financial Institutions No. 2019-12 dated December 18, 2019

CIRCULAR TO BANKS AND FINANCIAL INSTITUTIONS No. 12-2019 of December 18, 2019 Subject: Treatment of indebtedness of oil producers and olive oil exporters.

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, relating to banks and financial institutions; Having regard to Central Bank of Tunisia Circular No. 87-47 of December 23, 1987, relating to the terms of granting, control, and refinancing of credits, as amended and supplemented by subsequent texts; Having regard to Central Bank of Tunisia Circular No. 91-24 of December 17, 1991, relating to the division, risk coverage, and monitoring of commitments, as amended and supplemented by subsequent texts; Having regard to Central Bank of Tunisia Circular No. 2017-02 of March 10, 2017, relating to the implementation of monetary policy by the Central Bank of Tunisia, Having regard to the opinion of the compliance control committee No. 12-2019 of December 11, 2019,

Decides:

Article One - Banks and financial institutions may reschedule the principal and interest payments due on credits granted to oil producers and olive oil exporters who have encountered difficulties in repaying their debts during the 2017/2018 and 2018/2019 campaigns. Rescheduling is done on a case-by-case basis and for a duration that takes into account the repayment capacity of each beneficiary. Banks and financial institutions may grant new financing for the 2019/2020 campaign to beneficiaries of rescheduled credits.

Article 2 - Banks and financial institutions that have proceeded with rescheduling and granting new financing within the meaning of Article One of this circular may, during the year 2019, maintain the classification established at the end of December 2018 within the meaning of Article 8 of Central Bank of Tunisia Circular No. 91-24 of December 17, 1991, and this, only for companies classified 0 and 1 and having benefited from debt treatment measures within the meaning of this circular. Rescheduled credits and new credits granted in accordance with this circular are eligible for refinancing with the Central Bank of Tunisia.

Article 3 - Banks and financial institutions must, when calculating collective provisions, assign the oil producers and olive oil export sectors to specific categories in the reference methodology for calculating these provisions as provided in Annex 3 of Central Bank of Tunisia Circular No. 91-24 of December 17, 1991, while applying the following minimum provisioning rates:

Sectors	Minimum provisioning rate
Oil producers	35%
Olive oil exporters	30%

Article 4 - Banks and financial institutions are required to communicate monthly to the Central Bank of Tunisia, via the data exchange system, the list of companies that have benefited from treatment measures, indicating the nature of the measure, in accordance with the table in the annex to this circular.

Article 5 - This circular enters into force from the date of its publication.

The Governor, Marouane El ABASSI

Annex to Circular to banks and credit institutions No. 12-2019 of December 18, 2019, relating to the treatment of indebtedness of oil producers and olive oil exporters.

List for the month of:… The Bank or financial institution:… Name or corporate name of the beneficiary company: National identifier: Classification at end December 2018:

Forms of credit	Unpaid amounts for the 2017/2018 campaign	Unpaid amounts for the 2018/2019 campaign	Rescheduling
Principal	Contractual interest	Late payment interest	Principal
Working capital loans
Medium and long-term loans
Total

New credits granted	Amount	Interest rate (in %)	Duration	Guarantees
Rescheduling of working capital loans
Rescheduling of medium and long-term loans
Debts abandoned or written off, if applicable
Total

Signature