Central Bank of Tunisia Circular No. 2024-08 dated May 27, 2024

Tunis, May 27, 2024

CIRCULAR OF THE CENTRAL BANK OF TUNISIA No. 2024-08 Subject: Guarantee letter required by Article 189 of Law No. 2016-48 dated July 11, 2016, concerning banks and financial institutions.

The Governor of the Central Bank of Tunisia, Having regard to Law No. 2016-35 dated April 25, 2016, establishing the status of the Central Bank of Tunisia; Having regard to Law No. 2016-48 dated July 11, 2016, concerning banks and financial institutions, particularly Articles 32, 189, and 193 thereof; Having regard to the opinion of the Compliance Control Committee No. 08 dated May 15, 2024, as provided for by Article 42 of Law No. 2016-35 dated April 25, 2016, supra, particularly its second paragraph regarding circulars of an urgent nature; Decides:

Article 1: Foreign bank branches established in Tunisia prior to the entry into force of Law No. 2016-48, supra, and holding an allocation at least equal to half of the required minimum capital but not exceeding the minimum capital amount stipulated in Article 32 of that same law, must submit a guarantee letter in accordance with the template attached to this circular.

Article 2: The guarantee letter provided for in Article 1 of this circular is issued for the difference between the minimum capital required by Article 32 of Law No. 2016-48, supra, and the allocation allocated to the branch.

Article 3: The guarantee letter must be deposited with the Central Bank of Tunisia (Financial Stability Department) in original format and duly signed by the foreign bank within a period not exceeding two (2) months from the date of publication of this circular.

Article 4: The guarantee letter shall be returned to any foreign bank branch that demonstrates that the amount of its allocation is at least equal to the minimum capital amount stipulated in Article 32 of Law No. 2016-48, supra.

Article 5: This circular shall enter into force as of the date of its publication.

The Governor Fethi Zouhair Nouri

Annex to the Circular of the Central Bank of Tunisia No. 2024-08 dated May 27, 2024 (Guarantee Letter Template)

[Logo of the bank authorized to conduct banking activities through a branch] [Head office address] [Telephone / Email address] [Date]

To the Governor of the Central Bank of Tunisia Subject: Guarantee letter issued by [Legal name of the bank authorized to conduct banking activities through a branch] in favor of [Name of the branch in Tunisia].

In accordance with the provisions of Article 189 of Law No. 2016-48 dated July 11, 2016, concerning banks and financial institutions, [Legal name of the guaranteeing bank], acting as an authorized bank conducting its activities in Tunisia through the branch [Name of the branch in Tunisia / resident or non-resident], hereby undertakes by this guarantee letter to pay an amount of [Amount in words and figures] in favor of its branch in Tunisia, representing the difference between the minimum capital required by Article 32 of the aforementioned law and the allocated allocation.

This amount shall be paid upon first demand issued by the Central Bank of Tunisia under the conditions and timeframes it determines, without the obligated bank being able to object or invoke any reason.

This undertaking takes effect from the date of its signature and shall only cease when the allocation allocated to the branch reaches the minimum capital amount stipulated in Article 32 of the aforementioned law.

[Name and surname of the legal representative of the bank authorized to conduct banking activities through a branch] [Signature and seal of the obligated bank]

Annex to the Circular of the Central Bank of Tunisia No. 08 of 2024 dated May 27, 2024 (Guarantee Letter Model)

[Logo of the bank authorized to conduct banking activities through a branch] [Head office address] [Telephone / Email] [Date]

To the Governor of the Central Bank of Tunisia Subject: Guarantee letter granted by [Legal name of the bank authorized to conduct banking activities through a branch] in favor of [Name of the branch in Tunisia].

Pursuant to Article 189 of Law No. 48 of 2016 dated July 11, 2016 concerning banks and financial institutions, [Legal name of the bank authorized to conduct banking activities through a branch], in its capacity as an authorized entity conducting business in Tunisia through a branch [Name of the branch in Tunisia / its status (resident or non-resident) and address], hereby undertakes by this guarantee letter to pay an amount of [Amount in words and figures] in favor of its branch, representing the difference between the minimum capital required by Article 32 of the aforementioned law and the allocated allocation.

This amount shall be paid upon first demand issued by the Central Bank of Tunisia according to the conditions and deadlines it determines, without the obligated bank being able to object or invoke any reason.

This undertaking takes effect from the date of signing, and shall not cease until the allocated allocation to the branch reaches the value of the minimum capital specified in Article 32 of the aforementioned law.

[Name and surname of the legal representative of the bank authorized to conduct banking activities through a branch] [Signature and seal of the obligated bank]