Categories: Economy

Funding Line to Support Small and Medium Enterprises and Installment Payment Cards: Solutions Banks Might Adopt in Response to the New Check Law (Statement)

In a statement to Tunisia Digital on Tuesday, November 19, 2024, economist Mourad Hattab recapped the solutions that banks in Tunisia will adopt in response to the new check law, which will come into effect on February 2, 2025.

Hattab clarified that the law would have significant impacts on small and medium enterprises (SMEs) as well as the consumption system, prompting banks to consider financial support for economic players to avoid issues raised by the old law, especially those connected to guarantee checks and the payment facilities they provided.

The current focus, according to Hattab, involves three major areas. The first area targets small and medium enterprises by providing a financing line to further support them financially. The supervisory authorities have decided to give 8% of bank profits to fund this line, in addition to improving the management of operating and investment loans for SMEs, which are considered essential to the national economy and job market.

The second area concerns Tunisian consumers, who have long been accustomed to purchasing goods through guarantee checks, a practice that will be prohibited by the new law. This change is planned to address specific needs in situations of financial difficulty and seeks to improve the situation in Tunisia, following examples set by countries like Belgium, France, Jordan, and the UAE. To accommodate this shift, banks are anticipated to enter into agreements with various SMEs, such as large stores, home appliance retailers, and furniture shops, allowing consumers to make purchases without using checks by transferring funds directly from their account to the merchant’s account.

Concerning the third area, Hattab emphasised a notable shift in payment methods in Tunisia to further integrate different social groups. This will include the use of instalment payment cards, which will serve the same purpose as checks but offer greater security, compliance with the law, and enhanced protection. There will also be a move towards electronic payments and possibly a revision of the invoicing system, with a focus on electronic invoices and digitizing the entire payment process in Tunisia.

 
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