Summary:

On 22 March 2024, Minister of Social Affairs, Malek Zahi, announced that the National Social Security Fund (CNSS) would soon implement a new social loan program with a primary focus on personal loans.

The new program will begin accepting applications on 1 April 2024 from private sector workers. The program will follow a similar format to a loan program implemented by the National Retirement and Social Security Program (CNRPS), which began offering various loans to public sector workers early in 2024. The head of the CNRPS program indicated that 98% of loans requested were personal loans, with the remaining requests being for cars and homes.

These new programs have been launched as household debt in Tunisia continues to climb, spurred on by inflation and rising prices. A recent report indicated that household debt in Tunisia doubled between 2015 and 2022. Much of that rise was attributed to home renovations and current expenses.

Outlook: 

As pressure continues to grow on Tunisian households, many are desperate to access funds to cover their current and emergency expenses. While borrowing from retirement funds raises long-term risk, many likely see few other options for covering their expenses.

As the purchasing power of Tunisians continues to shrink, such loan programs will likely be popular but put families at risk of facing future cash flow challenges in retirement.

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