Extensive plan to reform Tunisian banking system
Tunisia, Economics, 12/13/1997

There is a movement in Tunisia advocating carrying out an extensive reform plan in the national banking system in order to cope with the changes resulting from comprehensive integration with the European Union.

The governor of the Tunisian Central Bank, Mohamed Al Bagy Hamda, declared that the intended reform will include two main programs: one for restructuring the banking system in a way that will strengthen its financial abilities through merging smaller banks into larger ones, and a second aiming to ensure the safety of banking operations.

Hamda added that the national banks are studying merger plans, the most important of which suggests merging the Tunisian and the UAE Investment Bank with the National Commercial Bank.

Hamda said the integration of the Tunisian economy with the international economy has led to attracting many foreign investments to Tunisia in the form of direct investments. He expected that foreign investments will represent 23% of the volume of the financial flow in the sectors of industry and services. The volume of direct investments during the 9th development plan (1997-2001) are expected to reach 250 million dinars ($225 million) per year.

Hamda also said the banks will abandon old systems which have become obsolete and which are unsuitable to deal with globalization. He stated that the upcoming stage will concentrate on the integration of the private and public sector roles in strengthening the Tunisian economy and enabling it to face increasing competition from other countries, especially from Europe.

Previous Stories:
  First major bank privatized in Tunisia   (12/5/1997)
  Tunisia gets loan to improve tourism   (11/25/1997)
  Tunisia ratifies the new five-year plan   (9/9/1997)

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