real estate

Outstanding housing loans hit 11.725 billion dinars late in 2020 (BCT)

March 17, 2021

TAP) - Outstanding housing loans reached 11.725 billion dinars at end 2020, according to data from the Central Bank of Tunisia (BCT).

The increase in bank interest rates has remarkably impacted the evolution of housing loans which went up by 446 million dinars in 2020, from 11.279 billion dinars in December 2019 to 11.725 billion dinars in December 2020.

BCT statistics showed that outstanding loans used for housing renovation reached 9.833 billion dinars; consumer credits amounted to 3.5 billion dinars. University credits reached 2.3 million dinars, while outstanding auto loans reached 343.5 million dinars.

The value of housing renovation loans increased from 9.193 billion dinars in December 2019 to 9.833 billion dinars by December 2020.

The outstanding amount of consumer loans rose modestly in 2020, from 3.267 billion dinars at the end of 2019 to 3.568 billion dinars at the end of 2020, up 301 million dinars.

This modest increase in consumer loans reflects the restrictions imposed by banks on this category of loans.

Auto loans grew by 33 million dinars in 2020, from 310.8 million dinars late of December 2019 to 343.5 million dinars in December 2020.

The overall outstanding loans granted to citizens by Tunisian banks reached 25.475 billion dinars late in 2020 against 24.53 billion dinars by the end of 2019, registering a slight increase of 1422 million dinars.

This is explained by the increase in the interest rates applied by banks following the hike in the Central Bank's key rate by 100 basis points in February 2019 (from 6.75 to 7.75).

This increase is behind the modest rise of loans granted by Tunisian banks, particularly consumer loans.

The BCT Executive Board's decision on October 1, 2020, to lower its key rate by 50 basis points to 6.25% could generate a drop in bank interest rates and consequently help revitalise the outstanding loans granted by banks in 2021, particularly consumer loans and mortgage loans.

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