The sky has fallen on Tunisia’s banking sector. A presidential decree issued on July 23, 2026 requires banks to allocate at least 8% of their annual profits to interest-free, unsecured loans for very small project holders every year.
The decree defines who is eligible to borrow, the maximum loan amounts, and the lending conditions. However, it leaves several major legal questions unanswered, including contradictions with the law it is meant to implement, the absence of any recovery mechanism for unpaid loans, and its impact on competition among entrepreneurs who are supposed to enjoy equal access to credit in Tunisia’s financial system.
The measure also places significant pressure on banks, which have been criticized for crowding out lending and urged by both the Central Bank Governor and the Finance Minister to extend more credit rather than prioritize profitability.
Who can borrow, how much, and under what conditions?
Decree No. 2026-148 requires every bank to create a dedicated account for these “honor loans,” funded in accordance with Article 412 ter of the Commercial Code. The loans are granted solely on the borrower’s good faith, without any collateral.
Four categories of beneficiaries are eligible:
Individuals
Small project promoters
Small and medium-sized enterprises (SMEs)
Communitarian companies established under Decree No. 2022-15, as amended in October 2025
Loan ceilings are set as follows:
25,000 dinars for SMEs and communitarian companies
10,000 dinars for small project promoters
5,000 dinars for individuals financing consumption needs
Loans carry no interest, require no collateral, may include a six-month grace period, and have a maximum repayment period of 10 years.
Banks must allocate at least half of these loans to SMEs and communitarian companies.
Applications must be processed within 10 working days, any refusal must be justified, no application fees may be charged and borrowers cannot receive a second loan until the first has been fully repaid.
Banks must transfer the required funds within 15 days after shareholders approve annual profit allocations, and all earmarked funds must be disbursed during the same year.
Auditors will monitor compliance through annual reports submitted to the Ministry of Finance and the Central Bank, complemented by quarterly reporting to the ministry and monthly reporting to the Central Bank.
Banks that fail to comply face penalties under Article 412 quater of the Commercial Code.
The decree, signed by President Kaïs Saïed, Prime Minister Sarra Zaafrani Zenzri, and Finance Minister Michket Slama Khaldi, applies beginning with the allocation of 2025 profits.
A repayment period that contradicts the law
The first legal issue concerns the repayment period.
Law No. 2024-41, which created this financing mechanism, limits these honor loans to a maximum of two years. The decree, however, extends the repayment period to 10 years, creating a direct contradiction between the implementing decree and the law itself.
Since an implementing decree cannot legally expand the scope of legislation, this provision could face challenges before Tunisia’s Administrative Court.
Retroactive application
A second issue concerns timing.
Although signed on July 23, 2026, the decree applies to the allocation of 2025 profits, even though banks had already finalized their 2025 accounts and shareholder meetings had approved dividend distributions between April and June 2026.
As a result, the mandatory 8% allocation would effectively come from profits that have already been distributed to shareholders, raising concerns about retroactive application and legal certainty.
Loans without collateral or recovery mechanisms
Perhaps the most significant weakness is economic rather than legal.
While the decree requires banks to issue unsecured loans, it establishes no legal framework for recovering unpaid debts.
Banks are prohibited from requesting either real or personal guarantees and the decree contains no provisions governing debt collection or alternative safeguards in case of default.
The only deterrent is that borrowers cannot obtain another loan until the previous one is repaid.
Penalties apply only to banks that fail to implement the program, not to borrowers who default.
As a result, unpaid loans would have to be provisioned under standard banking regulations, increasing costs and reducing profitability. At the same time, banks must replenish the financing pool every year with another 8% of profits, potentially creating a growing financial burden over time.
Accounting treatment also remains uncertain
According to one anonymous Tunisian banker, accounting authorities have not yet decided whether the mandatory allocation should be treated as a distribution of profits or as a financing commitment managed off-balance sheet, similar to special financing lines supported by the World Bank.
Until Tunisia’s Order of Chartered Accountants issues guidance, the financial impact on banks’ 2025 accounts will remain unclear.
Additional concerns
The decree also raises concerns for public-sector banks, whose executives have previously faced legal action over loans granted without sufficient guarantees. They now face the challenge of complying with a legal obligation that appears to conflict with prudent banking principles.
Finally, the legislation itself does not specify whether the 8% calculation should be based on net accounting profit or distributable profit, creating uncertainty over the amount banks must allocate—estimated at between 100 million and 126 million dinars annually.
Critics also argue that forcing banks to lend below their funding costs conflicts with basic banking principles. Some had proposed creating a mutual financing fund instead of imposing direct lending obligations on individual banks.
The government opted for the direct-lending model. Whether the annual 8% allocation results in genuine financing for entrepreneurs or becomes another legal obligation that banks ultimately neutralize through practice remains to be seen.
