The total household debt in Tunisia reached TND 32.162 billion in 2024, according to the Central Bank of Tunisia, of which TND 29.407 billion (91.4%) was provided by banks and TND 2.755 billion (8.6%) by microfinance institutions.
In terms of composition, 40.3% of bank debt relates to housing loans, while 59.7% corresponds to consumer credit.
This debt, used for subsistence or social status purposes, without intrinsic repayment capacity, turns each new loan into a cumulative risk of insolvency, according to a recent analysis by the Arab Institute of Business Leaders (IACE).
The report emphasizes that household over-indebtedness in Tunisia has reached a critical threshold. Acting quickly and effectively is no longer optional but a national necessity, requiring a balanced combination of regulation, transparency, and rehabilitation.
Titled “Household Over-Indebtedness: Diagnosis, Challenges, and Solutions in Tunisia,” the analysis reveals an alarming structural gap: between 2014 and 2024, the average gross disposable income per capita in Tunisia increased only marginally, from TND 1,512 to TND 1,568, a rise of just 3.7% over ten years.
Meanwhile, average financial debt per capita jumped from TND 1,619 to TND 2,686, an increase of 65.9%.
This structural gap between stagnant incomes and rapidly growing debt raised the budget fragility ratio from 107% in 2014 to about 171% in 2024, well above the internationally recognized viability threshold of 40%.
The budget fragility ratio is defined as the ratio of average debt per capita (TND 2,686) to average gross disposable income per capita (TND 1,568). It serves as an aggregated macroeconomic indicator reflecting the nationwide saturation of credit use.
