A group of MPs has submitted a legislative proposal aimed at regulating the guarantees required by banks when granting loans.
According to the authors of the text, these guarantees often exceed 150% of the loan amount (principal and interest included), placing a heavy burden on borrowers, particularly small and medium-sized enterprises.
In this context, MP Fatma Mseddi explained that this initiative emphasizes the possibility of obtaining bank loans equivalent to the value of the collateral, whereas current practices require that for an investment loan, banks demand guarantees exceeding double the loan amount.
She recently clarified on Express FM that banks justify this by citing the need to cover the risk associated with interest repaid along with the principal, a practice that does not exist in several countries. She noted that Morocco has more advanced investment mechanisms than Tunisia. Among other provisions, the proposed law stipulates that for a loan of 100,000 dinars, a real estate guarantee of equivalent value (100,000 dinars) would suffice, rather than double the amount, in accordance with Article 6 of the legislative initiative.
Without such a framework, Mseddi stated that if the state wishes to encourage investment in certain sectors, the Central Bank could set a guarantee requirement below the loan value, giving investors greater flexibility. The collateral would be assessed by judicial experts to prevent any manipulation of its value.
Loan approval criteria defined by BCT
She added that there are approval criteria set by the Central Bank of Tunisia (BCT). Guarantees should be regulated by law, which would benefit many sectors, such as agriculture and tourism.
The MP also highlighted the possibility of the loan amount exceeding the guarantee value under a structured mechanism aimed at encouraging investment in priority development zones. The Central Bank would then be responsible for identifying these zones to reduce regional inequalities, addressing major obstacles related to access to guarantees.
She pointed out that there is currently no clear legislative framework on this issue, leaving banks free to act as they see fit. She added that the proposed law would resolve many problems, stimulate investment, and be refined through committee hearings.
She reaffirmed that the primary goal of the proposal is to boost investment, particularly for ordinary citizens and small investors, who face a severe crisis in accessing bank financing, a critical issue in Tunisia.
She concluded that this legislative revision would be a starting point for other proposals aimed at improving access to bank credit and providing concrete solutions.
Mseddi emphasised that the only way to realise the effects of July 25 (2021) is to implement reforms with a real economic impact. She acknowledged that this proposal touches on a sensitive issue for some banks but stated that a debate would take place, with the goal of ensuring citizens receive the support they deserve.
Finally, she lamented that although many draft laws, economic, social, or security-related—have been proposed by MPs, very few are seriously examined.
She cited the example of the bill on regulating associations, which has been pending in committee since 2023 without being forwarded to the plenary session.
She denounced what she described as obstruction, arguing that it prevents MPs from playing a real role in legislative reform, even though many proposals could breathe new life into the country.
It is worth noting that this parliamentary initiative seeks to strike a balance between the interests of financial institutions and loan applicants while ensuring the sustainability of the banking system and promoting economic growth.
The draft law states that no bank may demand guarantees exceeding 100% of the borrowed amount (excluding interest and fees), except in exceptional, well-documented, and justified cases. It also imposes an obligation on lenders to provide borrowers with written details of the required guarantees, their valuation method, and the associated evaluation and registration costs.
In the case of real estate guarantees, evaluation, registration, and mortgage fees must not exceed 1% of the loan amount.
The text also opens the door to legal recourse. If a bank imposes guarantees exceeding the legal limit, the borrower may take legal action to demand a reduction.
If the law is passed, banks will have one year from its publication in the Official Gazette to review all existing loan contracts that have not yet been fully repaid (…).
