Crisis Deepens: Non-Performing Loans Plague Tunisian Banks amid Financial Turmoil
Tunisian public banks face mounting financial challenges as non-performing loans soar to 6.87 billion dinars, exacerbating the governance crisis. The economic slowdown has strained borrowers, and the loans coincide with government efforts to recover stolen assets from corrupt businessmen under President Kais Saied's anti-corruption drive.
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- Tunisia
Tunisian public banks are grappling with a staggering 6.87 billion dinars ($2.32 billion) in non-performing loans, signaling a deep financial crisis in the North African nation. Major state-owned banks, such as the Societe Tunisienne de Banque, BH Bank, and the National Agricultural Bank, are heavily impacted, according to reports from TAP state news agency.
The escalation of non-performing debt underscores a serious governance crisis within the country's public banking sector. An ongoing economic slowdown and a challenging business environment have compounded difficulties for borrowers, adversely affecting their capacity to repay loans.
The government, led by President Kais Saied, aims to recover nearly $4.8 billion through criminal cases against businessmen accused of corruption. The volume of non-performing loans essentially represents half of the government's target for retrieval from these settlement cases, as efforts continue to tackle financial misappropriation.
(With inputs from agencies.)
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