Bank financing to the government and public enterprises continued its upward trend, at the end of 2022, with an annual increase of 23.1% to TND 31.4 billion, or 20.7% of total bank assets, compared with TND 27.1 billion and 19.2%, respectively, a year earlier.
According to the Central Bank of Tunisia’s (BCT) 2022 annual report on banking supervision, almost 72% of this increase is explained by subscriptions to new government issues in the form of treasury bills and national bonds.
At the same time, as the BCT report points out, an analysis of changes in the ratio of resident banks’ exposure to the 5 and 10 largest private credit consumers to their net core capital shows that this ratio has virtually stagnated.
On the other hand, banks’ exposure to the 5 and 10 largest public sector entities, excluding public administration, has increased significantly and represents 74% and 91% of banks’ net core capital, respectively.
