Standard & Poor's Global Credit Rating expected that the current repercussions resulting from the Coronavirus epidemic will put great pressure on Tunisian banks, which could lead to the loss of up to two-thirds of its capital.
In a recent report issued by the agency entitled "Will Coved-19 Motivate the Tunisian Banks for the Long-awaited Merger", the financial conditions of some Tunisian banks are experiencing significant negative impacts in 2020, with the country heading towards economic stagnation as a result of the repercussions of the spread of the Covid-19 epidemic and measures taken by the government to contain it.
The International Monetary Fund estimates the size of the economic contraction in Tunisia at 4.3% this year, with expectations of a slight recovery in the year 2021. From the agency's point of view, this will exacerbate the challenges facing asset quality, which will put more pressure on the fundamentally weak levels of capitalization.
In the absence of any regulatory measures to mitigate the effects of the current conditions, Tunisian banks, according to the agency, will record losses in 2020, which will lead to a further decline in their fundamentally weak levels of capitalization, according to the agency.
Source (Al-Arabiya.net website, Edited)
