Central Bank of Tunisia Circular No. 2020-12 of May 28, 2020 on Exceptional Financing to Support Businesses and Professionals in Response to the COVID-19 Pandemic

CIRCULAR TO BANKS NO. 2020-12 dated May 28, 2020 Subject: Exceptional financing to support businesses and professionals in response to the repercussions of the Coronavirus COVID-19 pandemic. 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 Central Bank of Tunisia Circular No. 87-47 of December 23, 1987 on the procedures for granting, monitoring, and refinancing credits, as amended and supplemented by subsequent texts, Having regard to Central Bank of Tunisia Circular No. 91-24 of December 17, 1991 on risk division, 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 on the implementation of monetary policy by the Central Bank of Tunisia, as amended and supplemented by subsequent texts, Having regard to Central Bank of Tunisia Circular No. 2018-10 of November 1, 2018 on the "Credits / Deposits" ratio, as amended and supplemented by subsequent texts, Having regard to Central Bank of Tunisia Circular No. 2019-08 of October 14, 2019 on the definition of Islamic banking operations and the establishment of procedures and conditions for their exercise, Having regard to Central Bank of Tunisia Circular No. 2020-06 of March 19, 2020 on exceptional support measures for businesses and professionals, Having regard to Central Bank of Tunisia Circular No. 2020-07 of March 25, 2020 on exceptional support measures for individuals, as amended by Central Bank of Tunisia Circular No. 2020-08 of April 1, 2020, Having regard to the deliberations of the Board of Directors of the Central Bank of Tunisia dated May 27, 2020, Having regard to the opinion of the Compliance Control Committee No. 2020-11 dated May 13, 2020, Decides: Article 1 – In order to support businesses and professionals in coping with the repercussions of the Coronavirus COVID-19 pandemic, banks may, until the end of December 2020, grant new exceptional financing repayable over a maximum period of seven years (including two grace years) and intended to finance justified working capital needs, not exceeding 25% of the net sales (excluding taxes) realized in 2019 or equivalent to six months' payroll for companies that commenced operations after January 2019. The amount of the exceptional financing and the repayment period are determined on a case-by-case basis according to the client's needs and the evolution of the sector in which it operates. Article 2 – Exceptional financing granted in accordance with Article 1 of this circular during the period from March 1, 2020 to December 31, 2020 in favor of clients classified as 0, 1, 2, and 3 at the end of December 2019 under Article 8 of the aforementioned Central Bank of Tunisia Circular No. 91-24 of December 17, 1991, are admitted as collateral for refinancing operations on the money market, applying a progressive discount based on client classification. Article 3 – As long as the provisions of this circular and those of Circulars No. 2020-06 and No. 2020-07 remain in force, and notwithstanding Articles 2 and 3 of Circular No. 2018-10 of November 1, 2018, banks whose "Credits / Deposits" ratio exceeds 120% at the end of a determined quarter must reduce this ratio by 1% each quarter. This reduction is calculated based on the target ratio at the end of the previous quarter, as indicated in Annex 1 of this circular. The "Credits/Deposits" ratio is defined as the ratio between the following numerator and denominator: Numerator: Gross outstanding claims on customers in dinars, from which are subtracted: the sum of deferred maturities in dinars under exceptional measures for businesses, professionals, and individuals provided by Circulars No. 2020-06 and No. 2020-07, and the outstanding amount of exceptional financing in dinars granted under this circular. Denominator: The sum of the following elements: outstanding customer deposits and accounts in dinars after deduction of other amounts due to customers, outstanding certificates of deposit, any other form of borrowing in dinars and foreign currencies, excluding bond loans and money market borrowings. Banks must communicate to the Central Bank of Tunisia the calculation elements for the ratio in accordance with Annex 1 of this circular. Article 4 – Banks that have granted the financing provided for in Article 1 of this circular, regardless of amount, must communicate to the Central Bank of Tunisia via the data exchange system the post-audit control file provided for in Article 36 of Circular No. 87-47 mentioned above. In the case of participation by two or more banks in the financing, a lead bank of the banking pool is designated and shall be responsible for determining the company's exceptional financing needs, allocating them among participating banks, and communicating to the Central Bank of Tunisia the post-audit control file provided for in the first paragraph of this article. Article 5 – Banks must communicate monthly to the Central Bank of Tunisia, via the data exchange system, the list of beneficiaries of exceptional financing (EXCEL file), in accordance with the table in Annex 2 of this circular. Article 6 – The provisions of Article 4 and Annex 1 of Central Bank of Tunisia Circular No. 2020-07 of March 25, 2020 are hereby repealed. Article 7 – Banks declare monthly to the Information Center, exceptional financing granted under this circular in accordance with the financing form codes provided for in Annex 3 of this circular. Article 8 – This circular enters into force from the date of its publication. The Governor, Marouane El ABASSI

Annex 1 to Circular No. 2020-12 of May 28, 2020 on exceptional financing to support businesses and professionals in response to the Coronavirus COVID-19 pandemic. Bank: Calculation elements for the "Credits/Deposits" ratio as of ……. (In thousands of dinars unless otherwise indicated) Code RCM00 | Label | Quarter T-1 | Quarter T AC030000000000 | Claims on customers in dinar | Deferred maturities in dinar under exceptional measures for businesses and professionals provided by Circular No. 2020-06 | Deferred maturities in dinar under exceptional measures for individuals provided by Circular No. 2020-07 with net monthly salary less than or equal to 1000 dinars | Deferred maturities in dinar under exceptional measures for individuals provided by Circular No. 2020-07 with net monthly salary greater than 1000 dinars | Claims on businesses and professionals in dinar relating to exceptional financing provided by Circular No. 2020-12 of May 28, 2020 | Claims on customers in dinar net of deferred maturities under exceptional measures provided by Circulars No. 2020-06 and 2020-07 and claims on businesses and professionals relating to exceptional financing provided by Circular No. 2020-12 of May 28, 2020 (1) PA030000000000 | Customer deposits and accounts in dinar (2) PA030900000000 | Other amounts due to customers in dinar (3) PA040101000000 | Certificates of deposit (4) PA040300000000 | Special resources in dinar and foreign currency (5) PA020102010900 | Other borrowings Non-resident banks established in Tunisia in dinar and foreign currency (6) PA020102020900 | Other borrowings Non-resident banks established abroad in dinar and foreign currency (7) PA020101090000 | Other borrowings Resident banks in dinar and foreign currency (8) PA040209000000 | Other borrowings contracted in dinar and foreign currency (9) Denominator (10)=(2)-(3)+(4)+(5)+(6)+(7)+(8)+(9) "Credits/Deposits" Ratio (11)=(1)/(10) (in %) (12) (13) Target Ratio for the Quarter (in %) (14) Excess of claims ((13)-(14))*(10)

Annex 2 to Circular No. 2020-12 of May 28, 2020 on exceptional financing to support businesses and professionals in response to the Coronavirus COVID-19 pandemic. List for the month:…. Bank:… (In thousands of dinars) Tax ID / National Identity Card | Beneficiary Client | Classification at end of December 2019 | Net sales realized in 2019 (excluding taxes) | Payroll for 6 months for companies commencing operations after January 2019 | Exceptional financing granted | Grace period | Repayment duration | Applied interest rate | Totals

Annex 3 to Circular No. 2020-12 of May 28, 2020 on exceptional financing to support businesses and professionals in response to the Coronavirus COVID-19 pandemic. Codes for forms of exceptional financing granted to cope with the repercussions of the Coronavirus COVID-19 pandemic KFCRED | LABEL 303 | Exceptional COVID-19 Credit 304 | Exceptional Islamic Financing for COVID-19