Introduction to TUNISIA Tunisia is small open economy with strong ties to Europe. The country has been cited as a success story for a number of years, following decades of robust growth and impressive socio-economic progress. However, the continued rise in youth unemployment, regional disparities and nepotism have led to considerable popular unrest and ultimately to the fall of Ben Ali regime in January 2011. Despite difficulties, Tunisia has emerged has the sole Arab Spring country to have managed its political transition with some success, which in turn has sent a strong positive signal to the international community. Combined with a well-educated labour force, this provides solid foundations for the future. Political instability and insecurity have undermined the economy, however. Despite a recovery in the tourism sector, economic growth remains too low to reduce unemployment and macroeconomics fundamentals have deteriorated dangerously. In particular, the accumulation of a large budget deficit has fuelled a rapid growth in public debt, which is now high at above 60% of GDP, and vulnerable to exchange rate fluctuations. Accelerating the structural reform agenda while preserving macroeconomic stability amid strong social demand will be a major challenge for the authorities; however, as long as Tunisia continues to benefit from donor support, the situation should remain sustainable. Summary BNP Paribas presence BNP Paribas has been present in Tunisia since 1940 and has 5 business centres in the country, with services delivered through its subsidiary UBCI, which is 50% owned by BNP Paribas. BNP Paribas offers comprehensive banking services in Tunisia from corporate banking to specialist finance, asset management and wealth management. A dedicated team offers specific support to foreign multinationals doing business in Tunisia in addition to supporting Tunisian companies with their domestic and international banking requirements. BNP Paribas is one of the top 3 retail banks in sub-saharan Africa with a well-established African network across 9 countries: Algeria, Tunisia, Morocco, Senegal, Guinea, Ivory Coast, Burkina Faso, Gabon and Mali. Working with BNP Paribas BNP Paribas offers comprehensive local solutions and services in Tunisia in addition to its regional and global cash management and trade finance offering. The bank is well-positioned to meet the domestic and international needs of both multinational companies doing business in Tunisia and Tunisian companies pursuing an international strategy, including access to an extensive branch network across the country. Currency Currency Tunisian dinar (TND)
Bank accounts Resident / non-resident status There is no statutory definition of company residence in Tunisian law. A territorial system exists under which all income made in Tunisia is liable for taxation. Bank accounts for resident entities Within Tunisia Outside Tunisia Local Currency Permitted without restriction, fully convertible with CBT authorisation Not permitted Foreign Currency Permitted without restriction, fully convertible Permitted with restrictions, convertible with BCT authorisation Bank accounts for non-resident entities Within Tunisia Outside Tunisia Local Currency Permitted with restrictions, fully convertible Not permitted Foreign Currency Permitted with restrictions, fully convertible with BCT authorisation Not applicable Payments & Collections Credit transfers Credit transfers are used by companies for high-value business payments and by individuals for low-value retail payments. High-value (TND 100,000 and above) TND-denominated credit transfers are settled in real time via the SGMT. Low-value (below TND 100,000) TND-denominated credit transfers are settled on a next-day basis via SIBTEL. Direct debits Direct debits are used for regular payments, such as utility bills. Direct debits are settled on a next-day basis via SIBTEL.
Liquidity management Domestic: notional pooling Domestic notional cash pools are widely available. Resident and non-resident bank accounts can participate in the same notional pool structure. Domestic: cash concentration Domestic cash concentration structures are widely available. Resident and non-resident bank accounts can participate in the same cash concentration structure, as can different legal entities. Cross-border notional pooling Cross-border notional cash pools are permitted in Tunisia and are available to resident and non-resident entities. Cross-border cash concentration Cross-border cash concentration structures are widely available. Resident and non-resident bank accounts can participate in the same cross-border cash concentration structures, as can different legal entities International trade General trade rules As a member of the Greater Arab Free Trade Area (GAFTA), Tunisia has eliminated most trade tariffs with GAFTA member states. GAFTA comprises Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen. As a member of the Agadir Agreement, Tunisia has eliminated trade tariffs with Egypt, Jordan and Morocco. Imports / exports Textiles Machinery and equipment Hydrocarbons Chemicals Foodstuffs Primary Import sources France (18.2%) Italy (15.2%) China (8.5%) Germany (7.5%) Spain (4.3%) Russia (4.1%) Exports Clothing Semi-finished goods and textiles Agricultural products Mechanical goods Phosphates and chemicals Hydrocarbons Imports
Export markets France (30.7%) Italy (19.3%) Germany (11%) Spain (5.2%) Algeria (4.2%) Import / export volumes Exports Imports 2012 2013 2014 2015 2016 - goods USD m 17,071 17,146 16,841 14,159 13,572 services USD m 5,077 4,831 4,734 3,294 2,965 - goods USD m 23,102 22,981 23,403 19,103 19,462 services USD m 3,196 3,304 3,400 3,076 2,668 8.3 8.4 9.0 8.7 9.0 Current account as % GDP Source: IMF, International Financial Statistics, September 2017. Market data updated as of 01/08/2017 Libya (4%)