Bank Circular No. 2020-14 of June 18, 2020

BANK CIRCULAR No. 2020-14 of June 18, 2020
Subject: Establishment of the eligibility conditions and management procedures for the allocation line designated for refinancing rescheduling credits granted by banks to small and medium-sized enterprises (SMEs) affected by the repercussions of the spread of the Coronavirus "Covid-19". 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 the 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 Articles 12 and 13, 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 Government Decree No. 2020-309 of May 8, 2020, establishing the eligibility conditions and management procedures for the allocation line designated for refinancing rescheduling credits granted by banks to SMEs affected by the repercussions of the spread of the Coronavirus "Covid-19" and notably its Articles 3 and 4, Having regard to the Order of the Minister of Finance of May 8, 2020, regarding the establishment of the commission for supporting and assisting enterprises affected by the repercussions of the Coronavirus "Covid-19" pandemic, Having regard to the opinion of the Compliance Control Committee No. 2020-14 of June 15, 2020. Decides:

Article 1 - A special account is established in the books of the Central Bank of Tunisia, named "Account for the Allocation Line Refinancing Rescheduling Credits Granted by Banks to SMEs Affected by the Repercussions of the Spread of the Coronavirus 'Covid-19'", hereinafter referred to as "the Account", into which is deposited the amount of the allocation line allocated pursuant to Article 12 of the aforementioned Government Decree-Law No. 2020-6.
Article 2 - The resources of the Account are used to refinance rescheduling credits granted by banks, during the period from March 23, 2020, to December 31, 2020, to SMEs affected by the repercussions of the spread of the Coronavirus, excluding enterprises operating in the financial, commercial, hydrocarbon, real estate development sectors, and telecommunications network operators.
Article 3 - SMEs specified in Article 2 of this Circular, whose investment volume (including creation and expansion investments) does not exceed fifteen (15) million dinars, including working capital, and which meet the criteria for defining affected enterprises and the conditions set forth in Government Decree No. 2020-308, are eligible for interventions from the allocation line provided in Article 1.
Enterprises that fall into either of the following situations are ineligible for interventions from the allocation line:

• Those that have benefited from interventions by the Support Fund for SMEs, established pursuant to Articles 50 and 51 of Law No. 2014-54 of August 19, 2014 (supplementary finance law for 2014);
• Those that have benefited from interventions by the allocation line for supporting and revitalizing SMEs, established by Article 14 of Law No. 2017-66 of December 18, 2017 (finance law for 2018).
  An enterprise may benefit only once from interventions under the allocation line.
  Article 4 - The concerned enterprise must register a request for eligibility for rescheduling credit via the electronic platform established pursuant to Article 4 of Government Decree No. 2020-308, and submit a corresponding request to the lending bank.
  Article 5 - Rescheduling credits submitted for refinancing must fall within a program that guarantees the continuity of the enterprise's operations and the retention of jobs.
  Article 6 - Beneficiary enterprises are financed under the following conditions:
• A fixed annual interest rate equal to the Central Bank of Tunisia's prevailing reference rate, plus 2%;
• A repayment period not exceeding 10 years, including a grace period of up to two years.
  Article 7 - Banks must monthly report to the Information Center the rescheduling credits granted under this Circular using the following credit form code:
  KFCRED DESCRIPTION 306 Rescheduling Credit (Decree-Law No. 2020-06)
  Article 8 - Banks are refinanced under the following conditions:
• A fixed annual interest rate equal to the Central Bank of Tunisia's prevailing reference rate;
• A repayment period not exceeding 10 years, including a grace period of up to two years;
• An amount capped at three (3) million dinars per enterprise.
  To this end, the bank must submit a request to the Central Bank of Tunisia, which must include a copy of the rescheduling credit contract concluded between the bank and the beneficiary enterprise.
  In case of co-financing, each bank must submit an individual refinancing request.
  Article 9 - Installments are due on February 28 and August 31 of each year.
  The Central Bank of Tunisia prepares a repayment schedule for the principal and interest of the amount withdrawn from the Account and transmits it to the beneficiary bank.
  Article 10 - At maturity, the Central Bank of Tunisia automatically debits the installment amount from the bank's account held in its books.
  The bank may under no circumstances claim exemption due to the failure of beneficiary enterprises to meet their obligations.
  Article 11 - Any bank intending to use the Account's resources must designate a single point of contact for the Central Bank of Tunisia, as well as a substitute.
  The Central Bank of Tunisia (General Directorate of Financial Stability and Risk Prevention) must be informed, by any means leaving a written record, of the complete identity of the contact person and their substitute, including their telephone numbers and email addresses.
  Article 12 - Every bank must keep available to the Central Bank of Tunisia and the Ministry of Finance the original documents specified in Article 8 of this Circular.
  Article 13 - The bank receiving refinancing must, throughout the credit period and within a maximum of six months after the end of each fiscal year, submit to the Central Bank of Tunisia the financial statements of enterprises benefiting from interventions under the allocation line.
  Article 14 - The beneficiary bank must instruct its statutory auditors to prepare a semi-annual report on compliance with the provisions of this Circular. This report is submitted to the Central Bank of Tunisia and the Ministry of Finance within one month following the end of each semester.
  Article 15 - The final deadline for submitting refinancing requests is set at January 31, 2021.
  Article 16 - This Circular enters into force as of the date of its publication.
  The Governor,
  Marouane El ABASSI