The gigantic Franco-Tunisian Bank (BFT) closed its doors on Monday 28 February 2022. This decision announced by the Central Bank of Tunisia (BCT) emanates from the Commission for the resolution of banks and financial institutions in a compromised situation.
The BFT is the first Tunisian bank to fail under such conditions. The Commission for the resolution of bank and financial institution disputes in a compromised situation, chaired by Marouane Abassi, governor of the Central Bank of Tunisia, has noted the cessation of payment of the Franco-Tunisian Bank (BFT) and the impossibility of its recovery. The BCT proceeded to this effect, to the transmission of a report to the court of first instance of Tunis to give a judgment of dissolution and liquidation of the bank. Then, the procedure will be followed by the appointment of a liquidator, in accordance with the provisions of Law No. 2016-48 on banks and financial institutions, according to a statement issued on Monday 28 February by the Central Bank of Tunisia (BCT). The Secretary General of the Federation of Banks and Financial Institutions, Noônan Gharbi, said that the BFT was the subject of a dispute between ABCI, a Netherlands-based investment fund, which had bought it in the mid-1980s before being stripped of it by the Tunisian state. He added that “the bank has lost more than 200 million dinars (70 million euros) in litigation costs, in addition to the possibility of losing ill-gotten loans obtained by the bank’s clients.
The Tunisian Central Bank (BCT) takes measures
Through the communiqué, the BCT informs depositors that they can have access to the Bank Deposit Guarantee Fund, for their compensation within the legal deadlines. This is within the limit of the ceiling of 60 thousand dinars for each depositor. Similarly, it informs the public that all measures have been taken to ensure the continuity of the normal functioning of the banking activity and the payment system. In addition, it has reassured the public and all economic agents of the financial soundness of the banking sector. However, the central financial institution stressed that the transition to the liquidation process will not interrupt the debt collection procedures. These will be pursued by the liquidator by all legal means or amicably under the supervision of the court. This is to maximise the net proceeds of the liquidation and to secure the rights of the BF’s creditors
The Tunisian government concerned about the issue
The Tunisian government has taken the necessary steps to re-employ all staff in service at the time of the BFT’s suspension of payments. With the agreement of the Tunisian Professional Association of Banks and Financial Institutions, these agents may be deployed in other financial institutions in the country. Noônan Gharbi said that the closure of the BFT will certainly have repercussions on Tunisia because it is the first bank to fail. Moreover, it comes at a time of dramatic financial crisis.
