FINANCIAL STATEMENTS AND AUDITORS’ REPORT AS AT 31 DECEMBER 2019
March 2020
FINANCIAL STATEMENTS AS AT 31 DECEMBER 2019
CENTRAL BANK OF TUNISIA BALANCE SHEET AS AT 31 DECEMBER 2019 (In Tunisian dinars)
Assets Notes 31/12/2019 31/12/2018
Gold holding 1 569 491 253 512 906 454
Subscriptions to international organisations 2 2 371 793 2 371 793
IMF reserve position 3 506 101 907 423 938 124
Assets and investments in special drawing rights 4 33 376 336 85 055 604
Foreign currency assets 5 19 722 387 797 14 525 339 281
Refinancing to banks related to monetary policy transactions 6 8 995 000 000 11 846 000 000
Securities purchased in the framework of the open market 7 1 955 947 547 1 659 861 562 transactions
Advance to the State pertaining to Monetary Funds subscriptions 8 2 384 702 113 2 034 352 894
Shareholding portfolio 9 57 467 327 56 313 107
Fixed assets 10 126 009 497 39 610 832
Miscellaneous debtors 11 40 011 215 37 172 773
Memorandum accounts and accounts calling for adjustment 12 165 323 916 130 634 704
Total assets 34 558 190 701 31 353 557 128
The attached notes are an integral part of the financial statements
Central Bank of Tunisia : Financial statements –2019 1 CENTRAL BANK OF TUNISIA BALANCE SHEET AS AT 31 DECEMBER 2019 (In Tunisian dinars)
Liabilities and equity Notes 31/12/2019 31/12/2018
Liabilities Banknotes & coins in circulation 13 13 508 362 952 12 453 554 639 Bank and financial institutions current accounts 281 734 236 295 118 211
Government’s central account 14 1 306 050 686 1 562 993 875 Government’s special accounts 15 1 446 215 071 1 218 611 380 Allocations of special drawing rights 16 1 058 185 096 1 134 005 307
Current accounts in dinar of foreign institutions 17 1 763 691 849 1 484 789 511
Commitments towards banks tied to monetary policy operations 18 120 000 000
Commitments in foreign currency towards Tunisian authorised 19 7 271 650 393 6 932 889 693 intermediaries
Foreign accounts in foreign currency 20 201 120 443 208 796 208 Other commitments in foreign currency 21 2 271 287 500 1 106 743 708 Current collection of values 22 7 543 600 6 774 337 Differences on conversion and revaluation 23 3 013 947 082 3 259 640 800
Miscellaneous creditors 24 142 174 801 102 384 004
Memorandum accounts and accounts calling for adjustment 25 764 940 246 559 128 112
Total liabilities 33 156 903 955 30 325 429 785
Equity 26 Capital 6 000 000 6 000 000 Reserves 346 130 494 140 728 867 Other equity - 77 945
Total equity prior to financial year results 352 130 494 146 806 812 Financial year results 1 049 156 252 881 320 531
Total equity prior to allocation 1 401 286 746 1 028 127 343
Total liabilities and equity 34 558 190 701 31 353 557 128 The attached notes are an integral part of the financial statements
Central Bank of Tunisia : Financial statements –2019 2 CENTRAL BANK OF TUNISIA STATEMENT OF OFF BALANCE SHEET COMMITMENTS AS AT 31 DECEMBER 2019 (In Tunisian dinars)
Notes 31/12/2019 31/12/2018 27 Pledged commitments and collaterals 33 005 776 986 35 259 896 242 Collateral commitments pledged in the framework of external borrowings 32 420 474 414 32 957 527 074
Debenture loans 25 547 257 048 26 493 025 218 Other external borrowings 6 873 217 366 6 464 501 856 Commitments pledged on refinancing operations 585 302 572 2 302 369 168 Currency to be delivered on foreign exchange swap 585 302 572 2 302 369 168 operations Commitments and collaterals received 9 336 470 815 13 307 757 280
Commitments received on refinancing operations 609 616 820 2 305 572 331
Dinars to be received on foreign exchange swap operations 601 470 400 2 280 000 000 Carry over amounts on foreign exchange swap operations 8 146 420 25 572 331
Collaterals received in coverage of refinancing operations 8 721 814 532 11 001 004 847
Current claims 5 291 761 253 6 357 547 098 Bonds equivalent to Treasury bonds 3 430 053 279 4 643 457 749
5 039 463 1 180 102 Other commitments received Temporary guarantee received 918 000 112 000 Final guarantee received 4 121 463 1 068 102 Other commitments 4 503 012 4 846 226
Banknotes confiscated and detained at the BCT 4 503 012 4 846 226
The attached notes are an integral part of the financial statements
Central Bank of Tunisia : Financial statements –2019 3 CENTRAL BANK OF TUNISIA STATEMENT OF RESULT AS AT 31 DECEMBER 2019 (In Tunisian dinars)
Notes 31/12/2019 31/12/2018
Proceeds
Proceeds from intervention transactions on the money market 28 1 201 815 729 1 021 627 239 Interests on forward investments in foreign currency 29 149 953 427 165 399 655 Other proceeds on foreign currency transactions 30 86 756 220 32 432 293 Proceeds on transactions with international organisations 31 4 695 075 4 567 412
Interests on banks and financial institutions’ accounts 1 320 138 1 134 485
Miscellaneous proceeds 32 9 247 801 5 826 874 Write back of provisions for risks and costs 5 574 593 15 869 766
Total proceeds 1 459 362 983 1 246 857 724
Costs
Costs related to money market intervention transactions 33 31 659 808 19 870 510 Interests paid on transactions in foreign currency 34 72 640 002 29 849 099 Other costs on transactions in foreign currency 35 36 514 267 101 279 140 Costs on transactions with international organisations 36 9 942 186 10 567 064 Miscellaneous costs 613 445 870 263 Staff costs 37 96 050 844 89 046 334 General operating costs 38 25 829 608 20 795 571 Costs for banknotes and coins manufacturing 39 6 617 801 36 287 603
Allocations for fixed asset depreciation 7 311 069 8 478 609
Allocation of provisions and results of value adjustment on 2 268 618 660 000 shareholdings
Allocation of provisions for risks and costs 40 120 759 083 47 833 000
Total costs 410 206 731 365 537 193
Financial year result 1 049 156 252 881 320 531
The attached notes are an integral part of the financial statements
Central Bank of Tunisia : Financial statements –2019 4 Notes related to Financial Statements of the Central Bank of Tunisia as at 31 December 2019
I - Legal framework and accounting referential
The Central Bank of Tunisia’s financial statements are drawn up in conformity with the terms of law n°2016-35 of 25 April 2016 on the statute of the Central Bank of Tunisia and the Tunisian accounting standards, taking into account the specific nature of the Central Bank’s activities.
Central Bank of Tunisia financial statements include:
• a balance sheet,
• a statement of off balance sheet commitments,
• a statement of results, and
• notes related to the financial statements.
II - Accounting principles and rules of assessment
1) Gold holdings
The Bank’s gold holdings are made up of ingots and commemorative coins. Assets in the form of ingots are assessed on the last working day of each month at market price by using morning London fixing. Latent gains resulting from this revaluation are entered in the balance sheet liabilities under a revaluation difference account. It can in no way be entered with the Bank’s results. The latent losses are accounted for in the debit of the above-mentioned account.
When closing the accounting year, the possible debit balance of the mentioned account is entered in the financial year costs.
Gold assets in the form of commemorative coins are assessed at the official rate set at 0.6498475 dinar for a gram of fine gold, a rate applied since 19 August 1986, date of devaluation of the dinar as per decree n°86-785 of 18 August 1986.
2) Assets and liabilities in foreign currency Assets and liabilities labelled in foreign currency are converted to dinars on the closing date, at the «accounting reference rates» that represent average rates ([bid rate + offer rate]/2) set by the Central Bank of Tunisia on the same closing day.
Central Bank of Tunisia : Financial statements –2019 5 Latent losses and gains resulting from revaluation are entered under the «differences on conversion» account. Only net latent losses are entered in the result.
The «accounting reference rates» of the main foreign currencies are presented as follows at the end of the financial year:
2019 2018 Euro 3.14095000 3.42615000 US dollar 2.80325000 2.99665000 Pound Sterling 3.67675000 3.81640000 Swiss franc 2.89656500 3.03955000 Canadian dollar 2.14800000 2.20100000 United Arab Emirates dirham 0.76318000 0.81583500 Saudi riyal 0.74728500 0.79884000 Japanese Yen 0.02580000 0.02718215 Special drawing rights 3.87932200 4.15728000
3) Assumption of proceeds and costs 3-1 The entering of proceeds and costs is based on the periodicity convention and the convention of attachment of costs to proceeds. Thus, when proceeds are entered in an accounting year, all costs having contributed to achievement of these proceeds are determined and attached to this same financial year. 3-2 Proceeds and costs resulting from transactions in foreign currency are converted into dinars at the rate of exchange in effect on the day of the transaction. 3-3 At the end of the financial year, the balance of the account «differences on conversion» is processed as follows: • Debit balance : The total amount of the balance is entered as a cost for the financial year, • Credit balance: The total amount of the balance representing unrealized gains is still entered in the account «difference on conversion». 3-4 Differences between the exchange rates in effect on the day of the transactions and the accounting reference rates set the last working day of the month preceding the one during which these transactions were carried out, are entered in the statement of results as gains or losses on exchange.
4) Fixed assets Tangible and intangible fixed assets are accounted for by applying the rule of «historic cost». Aside from land and works of art, fixed assets are to be depreciated in a straight-line method over the projected lifespan of the fixed asset by applying the usual rates for
Central Bank of Tunisia : Financial statements –2019 6 each category of fixed asset. For certain equipment that is specific to the Central Bank of Tunisia (such as cash register equipment), lifespan and applied depreciation rate are determined by reference to the experience of their users. Tangible fixed assets involve mostly land, buildings, technical equipment, computer hardware, cash register equipment, transport material, and office equipment. Intangible fixed assets are made up mainly of computer software. The deadlines for retained depreciation as per the nature of each fixed asset are set as follows:
Fixed assets duration Software 3 years Buildings 20 years Office equipment Between 3 and 10 years Transport materiel Between 5 and 7 years Computer hardware 3 years Reprography equipment 3 years Cash register equipment Between 5 and 10 years Fittings and improvements Between 3 and 20 years Technical installation Between 3 and 10 years Plant and technical equipment Between 3 and 10 years
5) Securities in foreign currency Securities acquired within the framework of the management of foreign exchange reserves are classified, as of their acquisition, according to the intention of their holding, in one of the following categories: trading securities, placement securities or investment securities. The trading securities portfolio: consists of securities acquired with the intention, from the outset, to resell them in the short term, that is to say within a period not exceeding three months and whose trading market is considered liquid. They are recorded at their acquisition price, if applicable, accrued coupons included. Gains or losses resulting from the valuation, at each closing date, at market price, are recognized in the result. The investment securities portfolio: Investment securities are securities acquired with the clear intention of holding them until their maturities. They are entered in the balance sheet according to the following rules: they are recorded at their acquisition cost . the differences between the purchase price and the redemption value (discount or premium) are amortized on a straight-line basis over the residual life duration of the securities. Latent gains are not recognized.
Central Bank of Tunisia : Financial statements –2019 7 latent losses are only recognized if there is a probable risk of default by the issuer or when there is a high probability that the Bank will not keep securities until maturity. The placement securities portfolio: are securities acquired with the intention of holding them for a period exceeding three months, with the exception of securities that the Bank intends to keep until maturity and which meet the definition of investment securities. Their accounting follows the following rules: they are recorded at their acquisition costs . the differences between the acquisition price and the redemption value (discount or premium) are amortized on a straight-line basis over the residual life duration of securities. Latent losses from the difference between the accounting value and the market value of these securities are subject to provisions for securities depreciation. However, latent gains are not recognized.
6) Securities in dinar
Securities in dinars purchased in the framework of open market transactions are assessed at market price on the balance sheet’s closing date. A provision for depreciation of securities is accounted for in case of latent losses resulting from the difference between the accounting value and the securities market price. Latent gains are not entered.
7) Shareholding portfolio The Central Bank of Tunisia’s shareholding portfolio is made up of securities that it has acquired in the framework of article 36 of its statutes that represent its share in the capital of a number of non-resident organizations and companies as well as resident companies that manage common banking services. These shares are recorded at the price of acquisition. On the closing date, the portfolio is assessed at the value in use. Losses compared to the cost are subject to a provision. Latent gains are not entered. Shares granted freely and which did not yield financial flows are not recorded.
8) Operations with the international monetary fund (IMF) and the Arab monetary fund (AMF)
8-1 Operations with the IMF
8-1-1 Subscriptions The subscriptions related to the quota regularly approved by the Tunisian State in the IMF capital, both for the portion payable in foreign currency and for the portion in Tunisian dinar, are carried out by the BCT as a financial agent on behalf of the State, through an advance to the Treasury. Thus, these subscriptions are accounted for in the
Central Bank of Tunisia : Financial statements –2019 8 asset of the BCT balance sheet as an advance to the State. Its amount is equal to the counter-value in dinar of the amount of subscription expressed in special drawing rights (SDR). As for liability, the quota portion subscribed in dinar is entered in the credit of accountn°1 of the IMF. It is readjusted annually to take into account trend in SDR exchange rate compared to the Tunisian dinar, and this by reference to rates fixed by the IMF on 30 April of each year. In case of the dinar depreciation compared to SDR, this readjustment operation yields an increase in the credit balance of account n°1 of the IMF on the liability side and an increase in the advance to the State on the asset side. In case of the dinar appreciation, reverse operations are recorded. As for the quota portion subscribed in foreign currency, it is recorded under the asset heading “Reserve position at the IMF” alongside the “Advance to the State” heading as indicated above, and this to point out this heading as a component of international reserves. In this respect, a counterpart account holding the same amount is entered in the balance sheet’s liabilities among memorandum accounts. Computed in Tunisian dinar, the reserve position is annually readjusted to take into account the trend of SDR exchange rate compared to the Tunisian dinar and this, by reference to the rate fixed by the IMF on 30 April of each year. Ensuing latent gains are entered in balance sheet’s liabilities within an account of revaluation differences, and this in application of provisions of paragraph 5 of article 78 of law n°2016-35 of 25 April 2016 on the statute of the BCT.
8-1-2 Credit facilities Credit facilities contracted from the IMF are recorded on BCT books at the level of the balance sheet and off balance sheet depending on whether these facilities are meant to the BCT as an aid to the balance of payments or to the Tunisian Government as budget support. • Facilities granted to the BCT
Commitments tied to these facilities are entered in the BCT balance sheet’s liabilities in account n°1 of the IMF for the counter-value in Tunisian dinar and this, by applying the SDR/TND rate fixed by the IMF on 30 April of each year. The outstanding balance of these commitments is revalued annually by applying the above-mentioned new rate. Ensuing latent gain is entered in the same account of revaluation difference which records the latent gain resulting from revaluation of the reserve position at the IMF. • Facilities granted to the Tunisian Government Commitments tied to these facilities are entered in the off balance sheet in securities account in the name of the IMF for the counter-value in Tunisian dinar, and this, by applying the SDR/TND rate set by the IMF on 30 April of each year.
Central Bank of Tunisia : Financial statements –2019 9 The outstanding balance of these commitments is revalued annually through the application of the above-mentioned new rate. This revaluation does neither affect the balance sheet nor the operating result of the BCT.
8-1-3 Accounting for interests, commissions, and remuneration tied to operations and transactions with the IMF
Except for the credit facilities meant for the State budget support, all interests, commissions and remunerations related to operations and transactions with the IMF are recorded, according to the case, as costs or proceeds and impact thus the operating result of the BCT and this, in application of provisions of law n°77-71 of 7 December 1977, setting the BCT relation with the IMF on the one hand and with the AMF on the other hand. 8-2 Operations with the AMF
8-2-1 Subscriptions Subscriptions tied to quota regularly approved by the Tunisian State in the capital of the AMF, both for the portion payable in foreign currency and for the portion payable in Tunisian dinar, are carried out by the BCT as a financial agent on behalf of the State through an advance to the Treasury. Thus, these subscriptions are accounted for in the asset of the BCT balance sheet as an advance to the State. Its amount is equal to the counter-value in dinar of the amount of subscription expressed in Arab Accounting dinar (AAD)1. On the liabilities side, the quota portion subscribed in dinar is entered in the AMF credit account opened in dinar on the books of the BCT.
It is annually readjusted to take account of trend in AAD exchange rate compared to the Tunisian dinar and this, by reference to SDR rates set by the IMF at the end of December of each year.
In case of the dinar depreciation against SDR, this readjustment operation yields an increase in the credit balance of AMF account in dinar, on the liability side, and through an increase in advance to the State, on the asset side. Reverse operations are recorded in case of the dinar appreciation.
Furthermore and in order to reflect the real value of advance to the State with respect to subscription to AMF capital as provided for by provisions of article 2 of the above- mentioned law n°77-71, the portion subscribed in foreign currency is revaluated at the SDR/TND rate set by the IMF at the end of December. This readjustment operation yields an increase in advance to the State on the assets side, and recording of latent gain within
1 1 AAD = 3 SDR
Central Bank of Tunisia : Financial statements –2019 10
an account of revaluation, on the liability side, and this in case of the dinar depreciation against the SDR. Reverse transactions are recorded in case of the dinar appreciation.
8-2-2 Credit facility Credit facilities contracted by the BCT from AMF are recorded on books of the bank in its balance sheet liabilities. As for the credit facilities contracted by the Tunisian Government, only financial flows derived from drawings, settlement of interests and commissions, as well as reimbursement of maturities in principal are entered on books of the BCT. No commitment is accounted for by the BCT in this respect, neither at the level of balance sheet, nor off balance sheet.
8-2-3 Accounting for interest and commissions, relative to operations and transactions with the AMF
Excluding the credit facilities contracted by the Tunisian Government, all interests and commissions tied to operations and transactions with the AMF are recorded as cost and impact thus, the operating result of the BCT; and this in application of provisions of law n°77-71 of 7 December 1977, setting the BCT relation with the IMF on the one hand and the AMF on the other hand.
9) Recording external borrowing on behalf of the state or Tunisian authorized intermediaries
Are recorded in the statement of off balance sheet commitment: - the debenture loans issued by the Central Bank of Tunisia on behalf of the Tunisian Government on the foreign financial markets, - external borrowings of the State contracted in the framework of bilateral economic cooperation and managed by the BCT on behalf of the State while signing commitments towards foreign parties (bank or foreign financial institution) for settlement of relevant maturities, - portions of loans contracted from the IMF, meant to support the State budget, and
- external borrowings contracted by the BCT and retroceded to Tunisian Authorised Intermediaries. Commitments ensuing from the above-mentioned borrowings are considered as surety bonds and this, in application of the accounting convention of “pre-eminence of content over form”. Worth of note that financial commitments of the Central Bank ensuing from the above-stated borrowings have a corresponding similar commitment on the part of the State or the Tunisian Authorised Intermediary for the reimbursement of all maturities of relevant borrowings as well as settlement of all relevant financial costs.
Central Bank of Tunisia : Financial statements –2019 11 10) Fiduciary circulation
The Central Bank exerts, on behalf of the State, the sole right to issue in Tunisia, banknotes and coins. The amount of banknotes and coins in circulation recorded at the level of the BCT balance sheet liability is obtained through the difference between the amount of banknotes and coins issued and the amount of banknotes and coins held in the BCT cash desks (headquarters and branches).
11) Taxation The Central Bank is subdued to the fiscal regime of the State, local governments and public establishment with an administrative nature, in compliance with provisions of article 72 of its statutes. It is thus exempt from the corporate tax.
12) Related parties Are considered relate parties: - the Governor, - the Deputy Governor - the Secretary General and - members of the Executive Board. Members of the Executive Board other than the Governor and the Deputy Governor perceive attendance fees charged to the bank budget, the amount of which is set by governmental decree on a proposal from the Governor. The wage and benefits of the Governor, the Deputy Governor and the Secretary General are set by the Executive Board. They are assumed by the Bank. 13) Events subsequent to closing date No significant event occurred between the closing date and the date at which the present financial statements are closed.
III - Detailed explanation of the headings in the financial statements
Note 1: Gold Holding Under this heading is found the Bank’s gold money assets which came at 6.8 tonnes of fine gold as at 31 December 2019, broken down as follows:
Central Bank of Tunisia : Financial statements –2019 12 2019 2018
In grams In dinars In grams In dinars
Gold Holding 6 788 434 569 491 253 6 791 388 512 906 454
Ingots 4 135 982 567 767 565 4 139 404 511 183 070
* In BCT coffers 2 729 950 374 754 297 2 730 418 337 184 577
* Deposited at the Bank of England 1 406 032 193 013 268 1 408 986 173 998 493 Commemorative coins 2 652 452 1 723 688 2 651 984 1 723 384
Gold ingot assets are assessed at market price up to the end of December by using morning London fixing. The 56.6 MTD increase in these assets is mainly explained by the evolution of the price of an ounce of fine gold. Indeed, the price of an ounce rose from USD 1,281.65 (or USD 41.21 per gram of fine gold) at the end of December 2018 to USD 1,523 (or USD 48.97 per gram of fine gold) a year later, thus compensating for the weakening of the dollar exchange rate against the dinar which fell by 6.5%, down from 2.99665 to 2.80325 from one end of the year to the next. Given their specific features, commemorative coins are not subject to revaluation at the market price and remain valued at the official rate of 0.6498475 dinar for 1 gram of fine gold. It should be noted that the decrease in the quantity of gold ingots deposited in the Bank's coffers (- 468 grams) is explained by the reclassification of a certain number of gold ingots, not meeting the criteria of revaluation according to the market price, in the “commemorative coins” section, the quantity of which has, in turn, increased as a result (+ 468 grams). It is also important to specify that the variation in quantity of the gold ingots in deposit at the Bank of England (-2,954 grams) is explained by the fact that the placement operations of these ingots can generate variations in quantity, to upwards or downwards, at the maturity of these operations. These variations are offset by foreign currency settlements.
The income generated from these placement transactions at international banks fell sharply, from one year to the next, down from 154.3 thousand dinars at the end of the 2018 financial year to 64.7 thousand dinars at the end of December 2019, a drop of 89.6 thousand dinars.
Central Bank of Tunisia : Financial statements –2019 13 Note 2: subscriptions to international organisations
The amount recorded under this heading represents the total of sums paid by the BCT to certain international financial organizations as quotas subscribed in gold or foreign currency by the Republic of Tunisia in the capital of these institutions as per prevailing legislation authorizing the Central Bank to enter these shares under the assets heading of the Bank’s balance sheet. The date of the last transaction entered in this framework goes back to 1969. The State has since then assumed all subscriptions, whether in local or foreign currency.
The following institutions are involved: (In dinars) 2019* 2018* Subscription to international organizations 2 371 793 2 371 793 International Bank for Reconstruction and Development 215 408 215 408 International Development Association 87 202 87 202 International Financial Company 76 808 76 808 African Development Bank 1 992 375 1 992 375 * This concerns the exchange value in TND of amounts subscribed in gold or in foreign currency at historic exchange rates. Note 3: IMF reserve position
The amount recorded under this heading (506.1MTD1), represents the counter value in dinars of the portion of Tunisia’s quota subscribed to in foreign currency (121.8 million SDR) in the capital of IMF. This represents the difference between Tunisia’s full quota (545.2 million SDR) and IMF’s holdings in dinars, held in its account n°1 on the books of the BCT, exclusive of assets from recourse to IMF loan.
In the same way as for assets in foreign currency, the IMF reserve position is part of Tunisia’s international reserves. The IMF reserve position is analyzed as follows:
1 TND = 0.240622 SDR as per IMF quotation in effect since 30 April 2019.
Central Bank of Tunisia : Financial statements –2019 14
2019 2018 In SDR In dinars In SDR In dinars IMF reserve position 121 779 253 506 101 907 121 221 291 423 938 124 IMF quota 545 200 000 2 265 794 483 545 200 000 1 906 687 044
Global balance of account n°1 of the IMF (423 420 747) (1 759 692 576) (423 978 709) (1 482 748 920)
Note 4: Assets and investments in special drawing rights
This heading includes: - The balance of the SDR account opened in the name of the Central Bank of Tunisia on the books of the IMF. At the end of December 2019, this balance came to 6.2 million SDR,the equivalent of 24.2 million dinars1 up to this same date. - The amount in SDR representing the Central Bank of Tunisia’s contribution to the PRGF2 –HIPC3 fiduciary fund administered by the International Monetary Fund for an annual rate of 0.5% and a 20-year maturity falling due in March 2021. This contribution amounted to 2.4 million SDR, the equivalent of 9.2 million dinars.
(In dinars) 2019 2018 Variation Assets and investments in special drawing rights 33 376 336 85 055 604 -51 679 268 Assets in Special Drawing Rights 24 214 910 75 237 751 -51 022 841 Investments in Special Drawing Rights 9 161 426 9 817 853 -656 427
Operations recorded on SDR account opened in the name of the BCT on books of the IMF are broken down as follows: (In SDR) 2019 2018 Assets in SDR 6 242 047 18 097 831 Initial Balance 18 097 831 19 774 726
Maturity reimbursement in principal (AMF loans) (24 154 869) (19 200 000) Maturity reimbursement in interest (IMF and AMF loans) (33 660 278) (29 019 921) Remunerations received 1 938 173 2 998 674 Commissions paid (5 978 810) (6 455 648) SDR acquisition 50 000 000 50 000 000 1 SDR = 3.879322 TND on 31/12/2019. 2 Poverty Reduction and Growth Facility. 3 Heavily Indebted Poor Countries.
Central Bank of Tunisia : Financial statements –2019 15 Note 5: Foreign currency assets Foreign currency assets are broken down as follows: (In dinars) 2019 2018 Variation Foreign currency assets 19 722 387 797 14 525 339 281 5 197 048 516 Foreign banknotes assets 1 498 323 671 586 814 851 911 508 820 Sight assets 2 686 893 479 2 222 629 096 464 264 383 Assets in foreign currency cheques 168 006 180 307 -12 301 Deposit assets 9 714 482 978 6 789 280 921 2 925 202 057 Securities 5 178 195 571 4 261 081 370 917 114 201 Of which security sold under repurchase agreement* - 343 964 498 -343 964 498 (Provisions) (503 477) (1 636 538) 1 133 061 Foreign currency funds entrusted to external 602 950 403 627 799 222 -24 848 819 management mandate (Provisions) (322 622) (1 015 708) 693 086 Debit foreign accounts in foreign currency 42 199 788 40 205 760 1 994 028 *This involves bonds denominated in euro, granted as collaterals in the framework of tripartite repo operation, with the value amounting to 100.4 million euros on 31 December 2018. Foreign currency assets recorded a notable increase, standing at 19,722.4 MTD at the end of the financial year 2019 against 14,525.3 MTD a year earlier, up by 35.8%. Indeed, this increase is mainly due to important external resources mobilized during 2019. It should be noted that the main drawings made in 2019 on external credits were as follows: - EUR 695 million with respect to the debenture loan released on 15/07/2019; - USD 500 million for the Saudi loan granted under the budget support programme and released on 23 January 2019; - EUR 500 million for the deposit of the Central Bank of Libya carried in July 2019; - EUR 216.4 million with respect of the IMF credit released on 14 June 2019 under the MEDC; - EUR 298.9 million, which represent two tranches of the loan of the EU in the framework of macro-financial assistance programme II, released during July and November 2019; - EUR 119.7 million for the ADB loan released on 09 September 2019 as part of the financial sector modernization support programme; - EUR 100 million under the KFW loan released on 16 May 2019 as part of the banking and financial sector reform support programme; - EUR 50 million representing the first tranche of the AFD loan of 31 January 2018 as part of the support for the reform of the governance of public enterprises released on 22 February 2019.
Central Bank of Tunisia : Financial statements –2019 16 It is worth mentioning that during 2019, reimbursement was made for: - the debenture loan of USD 485 million in July 2019. - the first tranche of the Qatari private placement of USD 1 billion for an amount of USD 250 million in April 2019. Structure of year-end assets: USD EUR GBP JPY Others In Share In Share In Share In Share In Share millions In % millions in % millions in % millions in % millions* in %
31-12-2018 1 448 29.9 2 570 60.6 306 8.1 1 605 0.3 129 1.1 31-12-2019 2 825 40.2 3 281 52.2 297 5.5 5 952 0.8 252 1.3 Variation 1 377 711 -9 4 347 123 (in millions) *TND • Assets in foreign banknotes: Foreign banknotes assets are broken down by currency as follows: 2019 2018 In foreign In dinar In foreign In dinar currency currency Assets in foreign banknotes 1 498 323 671 586 814 851 EUR 362 496 237 1 138 582 556 92 024 238 315 288 842 USD 50 081 568 140 391 156 53 773 265 161 139 655 SAR 136 445 865 101 963 948 72 965 527 58 287 782 CHF 14 888 550 43 125 653 6 202 460 18 852 687 Others 74 260 358 33 245 885
• Securities portfolio: • Breakdown by category of securities: The securities portfolio is broken down as follows: (In million dinars) 2019 2018 Variation Trading securities 1 704 396 1 308 Placement securities 1 085 312 773 Investment securities 2 389 3 553 -1 164 Total 5 178 4 261 917
• Breakdown by residual maturity of securities: (In million dinars) 2019 2018 Variation ≤ 1 year 3 484 2 054 1 430 ≥ 1 year and ≤ 5 years 998 1 496 -498 > 5 years 696 711 -15 Total 5 178 4 261 917
Central Bank of Tunisia : Financial statements –2019 17 • Breakdown by category of issuer: (In million dinars) 2019 2018 Variation Sovereign 3 230 2 319 911 Sovereign agencies 47 286 -239 Regional agencies 14 110 -96 Regional authorities 111 410 -299 Supranational banks 252 377 -125 Others* 1 524 759 765 Total 5 178 4 261 917 *This involves other banks like KFW and NRW Bank.
• Breakdown by credit risk (Bloomberg composite credit rating) o Up to 31-12-2019 (In million dinars) Regional Regional Sovereign Sovereign Supranational Others Total agencies authorities agencies banks Trading securities F1+ - - - - - 1301 1 301 F2 - - 404 - - - 404 Placement securities AAA - 29 288 - - - 317 AA - - 27 - - - 27 AA- - 7 1 - - - 8 A- - - 728 - - - 728 B - - 5 - - - 5 Investment securities AAA 14 27 302 15 252 5 615 AA+ - - 32 - - 175 207 AA - - 599 32 - 43 674 AA- - 48 367 - - - 415 A- - - 152 - - - 152 B - - 325 - - - 325 Total 14 111 3 230 47 252 1 524 5 178 o Up to 31-12-2018 (In million dinars) Regional Regional Sovereign Sovereign Supranational Others Total agencies authorities agencies banks Trading securities F1+ - - - - 24 - 24 F2 - - 372 - - - 372 Placement securities AAA - - 306 - - - 306 AA- - - 1 - - - 1 B - - 5 - - - 5 Investment securities AAA - 33 277 84 353 261 1 008 AA+ 110 23 36 - - 406 575 AA - 167 713 202 - 92 1 174 AA- - 70 382 - - - 452 A+ - 117 - - - - 117 B - - 227 - - - 227 Total 110 410 2 319 286 377 759 4 261
Central Bank of Tunisia : Financial statements –2019 18 • Deposits: • Breakdown by counterpart (In million dinars) 2019 2018 Variation Commercial Banks 7 729 5 259 2 470 Supranational 1 956 1 499 457 Central Banks 29 31 -2 Total 9 714 6 789 2 925 • Breakdown of risk by geographic location (In million dinars) 2019 2018 Variation Europe 4 625 4 057 568 Japan 585 371 214 Arab countries 1 062 301 761 USA 29 31 -2 Hong Kong 563 530 33 Others* 2850 1 499 1 351 Total 9 714 6 789 2 925 *Canada and Supranational (BRI and FMA)
• Breakdown of bank deposit by credit risk (In million dinars) 2019 2018 Variation Rating Aaa and similar 2 440 2 009 431 Aa2 1 461 219 1 242 Aa3 2 978 1 273 1 705 A1 1 940 2 289 -349 A2 - 594 -594 A3 404 256 148 Baa1 392 - 392 NR 99 149 -50 Total 9 714 6 789 2 925
Note 6: Refinancing to banks related to monetary policy transactions This heading includes the outstanding balance of the Central Bank intervention on the money market to inject liquidity into banks. This outstanding balance closed the year down significantly by 2,851 MTD or 24.1%, regressing from 11,846 MTD at the end of 2018 to 8,995 MTD a year later, translating a gradual deceleration of the Central Bank intervention on the money market as from July 2019. These interventions were mainly in the form of 7-day call for bids that accounted for 77.8% of the overall outstanding balance of these interventions at the end of 2019, the amount of which came, at the same level as the one recorded from July 2017 (7,000 MTD).
Central Bank of Tunisia : Financial statements –2019 19 In addition, the drop in banks' needs for liquidity brought about a significant reduction in foreign exchange swap operations (for monetary policy purposes) with an average amount that came at 1,258 MTD at the end of 2019 compared to 2,574.4 MTD a year earlier, down significantly by 1,316.4 MTD. This trend was also favored by the sharp decline in banks' use of 24-hour loan facilities, which regressed by 2,520 MTD, down from 2,903 MTD at the end of December 2018 to just 383 MTD a year later.
It is worth mentioning that banks’ refinancing is made on presentation of collaterals in the form of Treasury bonds or current claims, amounting to 3,430 MTD and 5,291.8 MTD respectively, at the end of December 2019.
Besides, part of the outstanding balance as of the end of December 2019 was guaranteed by the State with an amount of 291.7 MTD.
(In dinars) 2019 2018 Refinancing to banks related to monetary Rate % Maturity 8 995 000 000 11 846 000 000 policy transactions
Injections through call for bids 7 .75 07/01/2020 7 000 000 000 7 000 000 000
Tapping actions / 24-h credit facilities 8.75 01/01/2020 383 000 000 2 903 000 000
Interventions on the money market in 8 09/06/2020 1 612 000 000 1 943 000 000 the form of 6-month refinancing
Note 7: Securities purchased in the framework of open market operations This heading is made up of firm purchased securities portfolio in the framework of open market operations. This portfolio is currently made up of bonds equivalent to Treasury bonds and short term Treasury bonds. To better respond to banks’ needs for liquidity, the BCT carried out in March 2019 outright purchases of Treasury bonds in the framework of the Open Market, bringing the balance of this heading to 1,955.9 MTD at the end of 2019 compared to 1,659.8 MTD in 2018, up by 296.1 MTD. Worth of note that this balance sheet heading has recorded in 2019 portfolio exit of falling due of Treasury bonds maturities in March for an amount of 161.5 MTD. At the end of 2019, this portfolio was valorized, based on the yield curve of the Tunisian market sovereign issues, launched officially on 21 December 2017. The portfolio of bonds equivalent to Treasury bonds and short-term outright purchases by the BCT is made up of the following lines:
Central Bank of Tunisia : Financial statements –2019 20 (In dinars) 2019 2018 Securities purchased in the framework of open 1 955 947 547 1 659 861 562 market operations BTA outright purchase 1 985 653 580 1 679 404 172 BTA 5.5% (March 2019) - 161 457 050 BTA 5.5% (February 2020) 181 191 388 180 269 449 BTA 5.5% (October 2020) 204 717 392 203 543 046 BTA 5.75% (January 2021) 174 295 275 173 792 494 BTA 6% (June 2021) 97 106 397 96 562 263 BTA 6.1% (November 2021) 91 348 475 39 401 729 BTA 6% (February 2022) 224 013 136 181 543 004 BTA 6.9% (May 2022) 218 273 398 147 471 951 BTA 5.6% (August 2022) 211 429 700 208 194 719 BTA 6% (April 2023) 221 433 094 187 752 514 BTA 6% (June 2023) 99 466 534 99 415 953 BTA 6.3% (December 2023) 84 420 699 - BTC (March 2020) 177 958 092 - (Provisions) (29 706 033) (19 542 610)
Note 8: Advance to the State pertaining to Monetary Funds subscriptions This heading enters, as an advance to the Treasury, the counter value in dinars of amounts paid out for subscriptions corresponding to Tunisia’s quota in the capital of the International Monetary Fund and the Arab Monetary Fund, in application of the terms of law n°77-71 of 7 December 1977 governing relations between the Central Bank of Tunisia and these two financial institutions. -International Monetary Fund : the overall amount of Tunisia’s subscription in the capital of this institution comes to 545.2 million SDR, 424 million subscribed in dinars and credited to account n°1 in the name of the International Monetary Fund and 121.8 million in convertible currency. Worth of note that Tunisia’s quota for 2016 increased by 258.7 million SDR following the 14th general review of quotas. -Arab Monetary Fund: Tunisia holds a 19.275 million Arab accounting dinar quota in the capital of this institution, of which: • 7 million Arab accounting dinars as a quota subscribed in cash (6.9 million subscribed in convertible currencies and 0.1 million in local currency and credited to the AMF’s dinar account on the books of the Central Bank of Tunisia), • 5.85 million Arab accounting dinars as Tunisia share as per decision n°3/2005 of the Fund’s Board of Governors approving release of the remaining portion of capital through incorporation of reserves and distribution of new shares to member states, proportionate to their initial quota, and
Central Bank of Tunisia : Financial statements –2019 21 • 6.425 million Arab accounting dinar representing Tunisia quota in subscription to the Fund capital increase as per decision n°3/2013 of the Fund’s Board of Governors. Half of this amount is released through incorporation of reserves st and the other is released in cash over 5 years as of 1 April 2014. The last portion was paid up in April 2018 for 642,500 Arab dinars. Worth of note that the Arab accounting dinar is worth 3 SDRs. Subscriptions in dinars to the capital of these two institutions, recorded as a credit to their respective accounts on the books of the Central Bank of Tunisia, are adjusted annually to take into account trends in the exchange rate for the SDR against the Tunisian dinar, with reference to the rate set by the International Monetary Fund. Note 9: Shareholding portfolio The amount recorded under this heading represents the paid-up portion of the Central Bank of Tunisia’s holdings in the capital of the following institutions:
31/12/2018 31/12/2019 31/12/2019* 31/12/2018 Participation Institutions In foreign In foreign currency in TND in TND rate (%) currency
Tunisian Foreign Bank 767 465.22 EUR 1 983 571.50 EUR 2 410 570 6 796 014 2.91 (Provision) (2 410 570) (4 244 000)
SWIFT company 5 330 EUR 5 330 EUR 16 741 18 261 0.007
African Export - Import Bank 10 000 000 USD 10 000 000 USD 28 032 500 29 966 500 1.975
Maghreb Bank for Investment 7 500 000 USD 5 000 000 USD 21 024 375 14 983 250 9.686 and Foreign Trade Arab Trade Financing Programme 2 065 000 USD 2 065 000 USD 5 788 711 6 188 082 0.275
SIBTEL 105 000 TND 105 000 TND 105 000 105 000 3
Bank deposit 2 500 000 TND 2 500 000 TND 2 500 000 2 500 000 50 guarantee fund Total 57 467 327 56 313 107 * As per the exchange rate in effect on 31 December 2019: 1 EUR = 3.14095TND; 1 USD = 2.80325 TND
Central Bank of Tunisia : Financial statements –2019 22
It should be noted that the main trends observed in this heading are as follows:
- release by the BCT of the third quarter of its participation in the capital of the Maghreb Bank for Investment and Foreign Trade in the amount of 2.5 million dollars, the equivalent of 7.1 MTD.
- decrease in the BCT participation in the capital of the Tunisian Foreign Bank (from 2 million euros to 0.8 million euros) explained exclusively by the capital reduction operation operated by this institution in April 2019 and which was followed by a capital increase to which the BCT did not subscribe.
It should be also noted that in application of provisions of articles 37 and 97 of its statutes, the BCT will no longer hold participations in the capital of the Tunisian foreign bank in 2020.
Central Bank of Tunisia : Financial statements –2019 23
Note 10: Fixed assets The following table shows details of the heading “fixed assets” as at the end of December 2019 (In dinars): Gross value Depreciation Net Accounting Heading Entries Outputs Allotments Outputs 31/12/2018 31/12/2019 31/12/2018 31/12/2019 Value 2019 2019 2019 2019 31/12/2019 Softwares 7 069 567 939 973 - 8 009 540 6 033 637 605 119 - 6 638 756 1 370 784 - Other intangible fixed assets 44 318 - 44 318 - - - - 44 318
Softwares : advances and on 211 760 56 317 - 268 077 - - - - 268 077 account payment - Intangible fixed assets 7 325 645 996 290 8 321 935 6 033 637 605 119 - 6 638 756 1 683 179 Lands 4 033 518 83 721 157 - 87 754 675 - - - - 87 754 675 Buildings 55 078 148 - - 55 078 148 49 870 863 681 997 - 50 552 860 4 525 288 Office equipment 1 145 930 843 308 - 1 989 238 932 286 97 097 - 1 029 383 959 855 Transport material 3 640 794 - 443 990 3 196 804 2 790 408 181 188 443 990 2 527 606 669 198 Computer hardware 9 674 041 1 046 395 - 10 720 436 9 084 561 676 508 - 9 761 069 959 367 Reprography equipment 485 644 155 627 - 641 271 262 874 157 362 - 420 236 221 035 Cashier equipment 21 956 102 1 411 654 - 23 367 756 19 512 227 1 695 653 - 21 207 880 2 159 876 Fittings 3 451 442 111 596 - 3 563 038 2 423 930 164 193 - 2 588 123 974 915 Technical installations 32 037 458 915 132 - 32 952 590 11 753 318 2 957 287 - 14 710 605 18 241 985 - Technical equipment 888 570 123 768 1 012 338 601 487 94 665 - 696 152 316 186 Works of art and antique coins 654 766 - 654 766 - - - - 654 766 - Pending tangible fixed assets 2 504 365 4 384 807 6 889 172 - - - - 6 889 172 of which : Construction in progress 1 663 336 2 411 793 - 4 075 129 - - - - 4 075 129 Technical installations in progress 838 341 629 074 - 1 467 415 - - - - 1 467 415 Tangible fixed assets 135 550 778 92 713 444 443 990 227 820 232 97 231 954 6 705 950 443 990 103 493 914 124 326 318
Total 142 876 423 93 709 734 443 990 236 142 167 103 265 591 7 311 069 443 990 110 132 670 126 009 497
Central Bank of Tunisia : Financial statements –2019 24
Note 11: Miscellaneous debtors The main entry under this heading is the outstanding balance of loans granted to Central Bank staff, financed from reserves for social fund as well as miscellaneous advances and payment on account granted to staff (40 MTD vs. 37.1 MTD in 2018). Note 12: Memorandum accounts and accounts calling for adjustment (assets) This heading includes mainly proceeds to be received, and other miscellaneous debtor accounts. It went up by 34.7 MTD from one year to the next following mainly the simultaneous evolution of proceeds to be received on monetary policy operations and gold stock meant for sale with respective amounts of 18.7 MTD and 13.8 MTD. It is detailed as follows: (In dinars) 2019 2018 Variation Memorandum accounts and accounts calling for adjustment (Assets) 165 323 916 130 634 704 34 689 212 Proceeds to be received and prepaid costs 146 147 595 127 373 113 18 774 482 Gold to be sold to jewellers 13 815 605 41 197 13 774 408 Foreign currency in current collection and 3 019 755 2 142 792 876 963 calling for adjustment Other miscellaneous debtor accounts 2 340 961 1 077 602 1 263 359
Note 13: Banknotes and coins in circulation Banknotes and coins in circulation increased by 1,054.8 MTD or 8.5%, closing for the year at 13,508.4 MTD compared to 12,453.6 MTD in 2018, with an overwhelming share of banknotes (97.1%). They are broken down as follows: (In dinars) 2019 2018 Variation
Banknotes and coins in circulation 13 508 362 952 12 453 554 639 1 054 808 313
Banknotes 13 112 217 805 12 083 707 425 1 028 510 380 Coins 396 145 147 369 847 214 26 297 933
Central Bank of Tunisia : Financial statements –2019 25 Banknotes and coins in circulation are detailed as follows: (In dinars) 2019 2018 Banknotes in circulation 13 112 217 805 12 083 707 425
50 dinars 2 320 905 350 2 833 213 800 20 dinars 7 802 909 460 5 961 783 540 10 dinars 2 919 850 510 3 216 004 300 5 dinars 68 552 485 72 705 785 Coins in circulation 396 145 147 369 847 214 5 dinars 100 004 970 96 009 735 2 dinars 39 563 728 26 020 228 1 dinar 141 895 193 140 633 239 500 millimes 54 114 995 49 229 347 200 millimes 7 938 694 7 733 728 100 millimes 30 617 328 29 019 242 50 millimes 9 130 117 8 575 207 20 millimes 8 095 163 7 867 400 10 millimes 2 449 143 2 423 385 5 millimes 2 202 462 2 202 400 2 millimes 73 074 73 051 1 millime 60 280 60 252
Note 14: Government’s central account It holds credit balances of accounts in foreign currency or in dinar representing resources available for the Treasury that can be mobilized by the latter in the framework of daily management of liquidity. This concerns notably, the Tunisian Treasury’s current account (905.1 MTD) and other accounts holding funds from external loans meant to support the State budget (401 MTD). (In dinars) 2019 2018 Variation
Government’s central account 1 306 050 686 1 562 993 875 -256 943 189 Tunisian Treasury current account 905 072 074 667 888 911 237 183 163
Debenture loan of EUR 500 M of 31 October 2018 - 788 014 500 -788 014 500
EU loan of EUR 500 M - Macro-financial assistance program II 155 390 256 - 155 390 256 FMA credit of 18.532 M DAC-Support for the promotion of environment favorable to PME 106 193 078 - 106 193 078 AFD loan of EUR 60M - Modernization of farms agricultural machinery PRIMEA 31 409 500 - 31 409 500 Others 107 985 778 107 090 464 895 314
Central Bank of Tunisia : Financial statements –2019 26 Note 15: Government’s special accounts This involves accounts with funds, in foreign currency or in dinar, that cannot be mobilized by the Treasury in the framework of daily management of liquidity. This heading includes, mainly, the balance of the Tunisian Government special accounts in foreign currency that enter drawings on external loans and grants meant to the State or to public institutions with the State guarantee and destined to well determined projects (1,121.9MTD), the balance of loan accounts denominated in dinar (230.7MTD), the balance of miscellaneous accounts (45.9MTD) as well as the balances of other accounts relative to miscellaneous funds held by the Central Bank on behalf of the State such as the Fund for Industrial Promotion and Decentralisation (FOPRODI) and the National Fund to Promote Handicrafts and Small Trades (FONAPRA). (In dinars) 2019 2018 Variation
Government’s special accounts 1 446 215 071 1 218 611 380 227 603 691
Tunisian government special accounts in foreign currency 1 121 946 503 946 143 663 175 802 840 Tunisian government - loans accounts 230 691 620 180 821 190 49 870 430 Tunisian government- miscellaneous accounts 45 876 312 53 879 240 -8 002 928 Of which : Conjunctural mechanisms to back-up businesses 23 471 364 22 345 740 1 125 624 Central account of first housing programme 21 206 507 30 351 312 -9 144 805 Allotment line to assist recovery of small and medium sized businesses 16 253 - 16 253 FOPRODI 34 040 114 11 125 255 22 914 859 FONAPRA 7 823 774 21 388 874 -13 565 100 Tunisian government- grants accounts 5 836 748 5 253 158 583 590
Special accounts in foreign currency are broken down as follows: 2019 2018 In foreign In foreign currency In dinars currency In dinars Special accounts in foreign 1 121 946 503 946 143 663 currency EUR 326 340 589 1 025 019 472 238 327 309 816 545 109 USD 11 065 078 31 018 180 12 847 955 38 500 825 JPY 2 067 155 481 53 332 611 2 860 768 962 77 761 851 Others - 12 576 240 - 13 335 878
Central Bank of Tunisia : Financial statements –2019 27 Furthermore, resources and uses flows of "FOPRODI" and "FONAPRA" funds recorded over the financial year are as follows: (In dinars) FOPRODI FONAPRA 2019 2018 2019 2018
Initial Balance 11 125 255 15 416 563 21 388 874 6 240 190 Resources 63 803 496 22 844 875 15 934 900 15 148 684 Budget allotment 60 000 000 20 000 000 - - Collection 3 803 496 2 844 875 15 934 900 15 148 684 Uses 40 888 637 27 136 183 29 500 000 - Final balance 34 040 114 11 125 255 7 823 774 21 388 874
Note 16: Allocations of special drawing rights This item includes the counterpart of the cumulated amounts of SDR allotted by the International Monetary Fund to Tunisia in its quality of member State. Coming to 272.8 million SDR as at the end of December 2019, these allocations are to be returned to the International Monetary Fund if SDR are cancelled. Thus, they constitute an open- ended commitment towards the International Monetary Fund. (In thousands of SDR) 2019 2018
Allocations in SDR 272 776 272 776 Allocation / January 1970 5 880 5 880 Allocation / January 1971 3 745 3 745 Allocation / January 1972 5 088 5 088 Allocation / January 1979 6 552 6 552 Allocation / January 1980 6 552 6 552 Allocation / January 1981 6 426 6 426 Allocation / August 2009 212 385 212 385 Allocation / September 2009 26 148 26 148 The last use of this account was operated in 2009 for a global amount of 238.5 million SDR, when the IMF granted to member countries general and special allotments. The downward variation of 75.8 MTD or 6.7% recorded at the end of 2019 financial year is exclusively explained by SDR exchange rate depreciation against the dinar. Note 17: Current accounts in dinars of foreign institutions This heading posts the balances of accounts opened in dinars in the name of foreign institutions such as the International Monetary Fund, the World Bank, the African Development Bank, and the Arab Monetary Fund. Worth of note that the IMF accounts
Central Bank of Tunisia : Financial statements –2019 28 kept on BCT books represent the main component of this heading. These accounts are detailed as follows: (In dinars) 2019 2018 IMF accounts 1 761 892 393 1 482 759 083 IMF Account n°1 1 759 692 576 1 482 748 920 IMF share subscribed in dinars 1 759 692 576 1 482 748 920 IMF Account n°2 2 199 817 10 163
Worth of note that the IMF securities’ account held on the books of the BCT and with the balance coming in, at the end of December 2019, at 5,274.5 MTD is entered in the offbalance sheet commitment statement at the level of «Other external borrowings» sub-heading. It holds the counter value in dinars of the portions of the two IMF loans granted in the framework of the Stand-by agreement and Extended Fund Facility arrangement, meant to support the State budget. Note 18: Commitments towards banks tied to monetary policy operations This item enters the intervention operations of the BCT on the money market in the form of a liquidity drain. The outstanding amount under these interventions amounted to 120 MTD as of 31 December 2019. This concerns notably an outstanding amount of liquidity drawdown in the form of 24-hour deposit facilities. Note 19: Commitments in foreign currency towards Tunisian authorised intermediaries This heading includes the sight assets in foreign currency of Tunisian authorised intermediaries (5,333.8 MTD) and the outstanding balance of borrowings by the Central Bank on the money market in foreign currency (1,937.9 MTD). These commitments are broken down as follows:
2019 2018 In foreign In dinar In foreign In dinar currency currency
Commitments in foreign currency towards Tunisian authorised intermediaries 7 271 650 393 6 932 889 693 EUR 1 426 491 139 4 480 537 343 1 373 188 996 4 704 751 480 USD 890 923 175 2 497 480 392 611 648 365 1 832 896 072 CHF 30 005 647 86 913 308 43 383 239 131 865 523 GBP 22 987 125 84 517 911 24 017 435 91 660 141 SAR 45 241 617 33 808 382 48 158 080 38 470 601 AED 22 036 136 16 817 538 44 320 384 36 158 120 CAD 10 749 203 23 089 287 16 887 021 37 168 334 Others 48 486 232 59 919 422
Central Bank of Tunisia : Financial statements –2019 29 Note 20: Foreign accounts in foreign currency This heading records the credit balance of accounts in foreign currency or convertible Tunisian dinars in the name of non-resident banks or institutions. Note 21: Other commitments in foreign currency The amount under this heading represents the exchange value in dinars of forward commitment amounts in foreign currency of the Central Bank of Tunisia with respect to external borrowings or deposits. It is broken down as follows:
- 50 million US dollar (140.2 MTD) representing deposit made by the Bank of Algeria at the Central Bank of Tunisia pursuant to the convention signed by the two central Banks on 28 April 2011,
- 200 million US dollar (560.7 MTD) representing two deposits, 100 million US dollar each carried out by the Bank of Algeria at the Central Bank of Tunisia as per the conventions concluded in this respect between the two Central Banks on 04 May 2014 and 17 March 2015 respectively.
- 500 million Euro (1,570.5 MTD) representing the deposit carried by the Central Bank of Libya at the Central Bank of Tunisia under the agreement concluded in this respect, between the two central banks, dated 4 July 2019. Worth of note in this respect that 2019 was marked by reimbursement of maturities relative to the AMF loan contracted in the framework of credit facilities for structural adjustment V with an amount worth 3.6 million SDR (15.2 MTD). Note 22: Current collection of values The amount recorded under this heading represents the net credit balance of values collection accounts, notably drawn cheques and bills in favour of the Treasury as well as transfers made by the Bank’s departments through the electronic clearing system. Note 23: Differences on conversion and revaluation This category includes: • The accumulated net gains on revaluation of foreign currency accounts for 2,246.1 MTD. Worth of note that foreign currency accounts revaluation over 2019 yielded a net loss of 373.8 MTD, totally absorbed by net gains carried forward from 2018 financial year for an amount of 2,620 MTD, • The accumulated net gains from revaluation at market price of gold ingots assets for 561.1 MTD, 504.2 MTD of which were carried forward from 2018 financial year, • The accumulated net gains with respect to readjustment of operations with the IMF and the AMF worth 206.7 MTD, 135.5 MTD of which were carried forward from 2018 financial year.
Central Bank of Tunisia : Financial statements –2019 30 Note 24: Miscellaneous creditors This heading includes mainly the deposit accounts of the Bank staff, provisions constituted with respect to retirement benefits and leave allowance to be paid, withholding taxes due to the State, contributions for social coverage pending payment, the attachment orders on current accounts and other accounts in the name of national entities. (In dinars) 2019 2018 Variation
Miscellaneous creditors 142 174 801 102 384 004 39 790 797 Trust fund accounts (staff accounts, staff association 24 655 367 20 928 412 3 726 955 account,…) Provision for retirement benefit 9 009 721 8 692 241 317 480 Provision for leave to be paid 7 622 550 6 478 769 1 143 781 Withholding tax, VAT collected and other taxes and 6 710 335 2 966 923 3 743 412 levies due to the State Contributions with respect to social coverage – 1 839 738 1 763 261 76 477 suspense account Other miscellaneous creditors 92 337 090 61 554 398 30 782 692 of which : Attachment orders 33 957 394 22 341 073 11 616 321 High independent Authority for elections 4 837 390 28 551 777 -23 714 387 Bank Deposit Guarantee Fund 23 227 076 5 980 731 17 246 345
Note 25: Memorandum accounts and accounts calling for adjustment (liabilities) This heading includes mainly the counterpart of the IMF reserve position, provisions for risks and costs, and costs to be paid. (In dinars) 2019 2018 Variation Memorandum accounts and accounts calling for 764 940 246 559 128 112 205 812 134 adjustment (liabilities) Counterpart of the IMF reserve position 506 101 907 423 938 124 82 163 783 Staff costs to be paid 18 175 080 18 387 463 -212 383 Costs to be paid and miscellaneous proceeds paid in advance 15 759 126 12 573 575 3 185 551
Expenditure to be paid for specific and exceptional purposes 3 130 272 2 546 658 583 614 Foreign currency pending assignment 1 521 698 1 654 646 -132 948 Provisions for risks and costs 213 811 600 98 627 110 115 184 490 Other memorandum and adjustment accounts 6 440 563 1 400 536 5 040 027
Central Bank of Tunisia : Financial statements –2019 31 Note 26: Equity Equity prior to the appropriation of 2019 result came to 1,401.3 MTD at the end of December 2019, compared to 1,028.1 MTD in 2018, an increase by 373.2 MTD or 36.3%. Breakdown is as follows: (In dinars) 2019 2018
Capital 6 000 000 6 000 000 Reserves 346 130 494 140 728 867 Legal reserve 3 000 000 3 000 000 Special reserve 307 794 668 102 794 668 Social fund reserve 35 335 826 34 934 199 Other equity - 77 945 Total equity prior to financial year results 352 130 494 146 806 812 Financial year results 1 049 156 252 881 320 531 Total equity prior to allocation 1 401 286 746 1 028 127 343 The Executive Board of the Bank approved in its meeting held on 21 March 2019, breakdown of 2018 year results as follows:
Results for the year 881 320 531 Special reserve 205 000 000 Share due to the State 676 320 531
Equity movements, recorded over the financial year closed on 31 December 2019, are presented as follows: (In dinars)
Description Balance on Allocation of Reserve for Other Financial Balance on 31/12/2018 result social fund equity year result 31/12/2019
Capital 6 000 000 - - - - 6 000 000
Legal reserve 3 000 000 - - - - 3 000 000
Special reserve 102 794 668 205 000 000 - - - 307 794 668
Reserve for social 34 934 199 - 401 627 - - 35 335 826 fund Other equity 77 945 - - (77 945) - - Financial year result 881 320 531 (881 320 531) - - 1 049 156 252 1 049 156 252 Total equity 1 028 127 343 (676 320 531) 401 627 (77 945) 1 049 156 252 1 401 286 746
Central Bank of Tunisia : Financial statements –2019 32 Social fund resources and uses as at the end of December 2019, are presented as follows: (In dinars) Resources Uses Description Balance Balance on 31-12-2018 on 31-12-2019 Allotment Reimbursement Loans Resources 34 934 199 - 401 627 - 35 335 826 Allotment 27 038 126 - - - 27 038 126 Interest on long term 4 087 801 - 160 928 - 4 248 729 loans Interest on medium 3 808 272 - 240 699 - 4 048 971 term loans
Uses (31 157 142) - 10 086 601 (13 234 070) (34 304 611) Housing loans (14 781 585) - 1 676 436 (3 353 289) (16 458 438) Medium term loans (8 211 394) - 2 662 072 (2 833 383) (8 382 705) Short term loans (8 164 163) - 5 748 093 (7 047 398) (9 463 468) Available Resources 3 777 057 - 10 488 228 (13 234 070) 1 031 215
Note 27: Off balance sheet commitments The statement of off balance sheet commitments includes: Pledged commitments and collaterals - Collateral commitments pledged in the framework of external borrowings: Debenture loans and other external borrowings : This involves commitments with respect to:
- debenture loans issued by the Central Bank of Tunisia on behalf of the Tunisian Government on foreign financial markets; - external borrowings by the State in the framework of bilateral economic cooperation and managed by the Central Bank on behalf of the State while signing commitments towards the foreign party (foreign bank or financial institution) for settlement of relevant payments due ;and - external borrowings contracted by the BCT and retroceded to Tunisian Authorised Intermediaries (particularly loans from the Arab Trade Financing Programme). Under this heading are also entered the BCT commitments towards the IMF for the fund credit portions meant to boost the State budget. This concerns the loan granted in the framework of the Stand-by agreement as well as the loan granted in the framework of Extended Fund Facility arrangement with the sixth portion released in June 2019 for a global amount of 734.7MTD.
Central Bank of Tunisia : Financial statements –2019 33 Worth of note, in this framework, that the outstanding balance of debenture loans went from 26,493 MTD in December 2018 to 25,547.3 MTD a year later: down by 945.7 MTD explained for the most part, on the one hand, by the repayment of the debenture loan of USD 485 million (July 2019) and on the other hand, by the repayment of the first tranche of the Qatari private placement of USD 1 billion for an amount equal to USD 250 million (April 2019). It should be noted that this decline would have been more significant had it not been for the sharp increase induced by the EUR 695 million debenture loan released on 15 July 2019. These commitments are in fact considered to be surety bonds (off balance sheet), in accordance with the accounting convention «pre-eminence of content over form». Worth of note that the Central Bank’s financial commitments coming from the above- mentioned borrowings mean a similar commitment on the part of the State or the Tunisian Authorised Intermediary for repayment of all borrowings maturities as well as settlement of all related financial costs. (In dinars) 2019 2018 Variation
Debenture loans 25 547 257 048 26 493 025 218 -945 768 170 Other external borrowings 6 873 217 366 6 464 501 856 408 715 510 State external borrowings contracted in the framework of bilateral economic 1 128 703 097 1 270 980 443 -142 277 346 cooperation External borrowings contracted by the BCT and retroceded to Tunisian 470 055 572 413 699 177 56 356 395 authorised intermediaries IMF loans meant to boost the State 5 274 458 697 4 779 822 236 494 636 461 budget - Pledged commitments on refinancing operations: This concerns given commitments related to exchange swap operations as a monetary policy instrument, introduced by the Central Bank as of May 2015 to meet banks’ liquidity needs. As at the end of December 2019, the amount entered under this heading (585.3 MTD) represents the counter-value in dinar, at the exchange rate of the closing date, of the currencies to be delivered to banks on the date of swap transaction achievement concluded in October, November and December 2019 for three-month maturities. Commitments and collaterals received - Commitments received on refinancing operations: This involves commitments received from banks participating in exchange swap operations. They are made up of amounts of dinars to be received on the date of the
Central Bank of Tunisia : Financial statements –2019 34 close-up (601.5 MTD) and non-accrued carry-over amounts with respect to these transactions (8.1 MTD). - Collaterals received in coverage of refinancing operations This concerns collaterals received as a counterpart of bank refinancing operations other than those carried up through exchange swap. They totalled 8,721.8 MTD at the end of December 2019 and are broken down into current claims and Treasury bonds, amounting to 5,291.8 MTD and 3,430 MTD respectively. - Other commitments received: This concerns provisional and final guarantees received from tenderers in the Framework of calls for bids launched by the Central Bank. At the end of December 2019, the amount of these collaterals came to 5 MTD compared to 1.2 MTD in 2018.
Other commitments This involves Tunisian and foreign banknotes, confiscated by the legal authorities and the customs’ duties, and entrusted to the BCT for conservation. At the end of December 2019, the amount of these banknotes came to 4.5 MTD against 4.8 MTD in 2018. Worth of note that the operations with the outcome dependent on the BCT policies are only accounted for when carried out. Note 28: Proceeds from intervention on the money market Remaining the most important heading in the statement of result, proceeds from refinancing operations, whose weight in the total income of the Bank was up to 82.4%, reached 1,201.8 MTD at the end of December 2019 against 1,021.6 MTD, a year earlier, increasing by of 180.2 MTD. This item includes, mainly, interests collected with respect to the Central Bank intervention on the money market through calls for bids, which amounted to 542.5 MTD at the end of December 2019, compared to 464.1 MTD over the corresponding period of the previous year, up by 78.4 MTD or 16.9%. The Central Bank of Tunisia initiated also outright purchase operations of Treasury bonds in the framework of the open market, yielding some 145 MTD in proceeds over December 2019 compared to 79.6 MTD in the previous financial year. Furthermore, proceeds from 24-hour loan facilities fell by 6.1 MTD from one end of the year to the next, thus reflecting the less and less significant recourse of banks to these operations, due to the drop in their liquidity needs. Proceeds encashed with respect to carry-over amounts on exchange swap operations were down significantly by 90 MTD, coming to 104 MTD at the end of 2019 compared to 194 MTD a year before. This was led by an ongoing reduction in swap exchange operations which regressed, in annual average, from 2,574.4 MTD in 2018 to 1,258 MTD at the end of 2019. Central Bank of Tunisia : Financial statements –2019 35 (In dinars) 2019 2018 Variation
Proceeds from intervention on the money market 1 201 815 729 1 021 627 239 180 188 490 Interests on interventions on the money market in the form of purchase on calls for bids 542 509 078 464 071 743 78 437 335 Proceeds on securities purchased firm 144 964 540 79 563 194 65 401 346 Interests on 24-hour credit facility 232 896 889 239 034 090 -6 137 201 Carry-over on foreign exchange swap operations 103 987 780 194 019 659 -90 031 879 Interest on money market intervention in the form of allowance uptake of Treasury bonds for a 3-month duration - 22 727 156 -22 727 156 Interest on money market intervention in the form of refinancing operation with a six-month duration 142 289 772 10 637 925 131 651 847 Other proceeds 35 167 670 11 573 472 23 594 198 Of which : Penalty interests 15 625 060 6 557 960 9 067 100 Note 29: Interests on forward investments in foreign currency This heading includes, mainly, interests on securities in foreign currency which totalled 73.9 MTD at the end of December 2019 compared to 71.6 MTD a year earlier yielding thus a slight 2.3 MTD increase. In addition, the interest received on securities in foreign currencies constitutes a non- negligible part of the total of this heading, reaching 62.3 MTD at the end of the financial year 2019 against 82.8 MTD a year earlier, down by 20.5 MTD mainly explained by falling due of several securities denominated in Euro. It is broken down as follows: (In dinars) 2019 2018 Variation
Interests on forward investments in foreign currency 149 953 427 165 399 655 -15 446 228 Interests on securities in foreign currency 62 255 120 82 785 875 -20 530 755 EUR 36 114 979 49 616 880 -13 501 901 USD 22 897 046 20 451 229 2 445 817 GBP 3 067 211 12 552 952 -9 485 741 JPY 175 884 164 814 11 070 Interests on deposits in foreign currency 73 928 402 71 579 607 2 348 795 USD 67 407 031 69 107 783 -1 700 752 GBP 6 146 073 1 707 478 4 438 595 EUR 305 461 606 350 -300 889 Others 69 837 157 996 -88 159 Interests on foreign currency funds entrusted for external management 13 769 905 11 034 173 2 735 732 USD 13 769 905 11 034 173 2 735 732
Central Bank of Tunisia : Financial statements –2019 36 Note 30: Other proceeds on foreign currency transactions This heading includes mainly net foreign exchange gains on foreign currency transactions (28.6 MTD) as well as interest received on sight foreign currency assets which went up by 23.7 MTD from the end of the year to the other. It is broken down as follows: (In dinars) 2019 2018 Variation Other proceeds on foreign currency transactions 86 756 220 32 432 293 54 323 927 Commissions on exchange operations 10 068 837 14 513 640 -4 444 803 Exchange gains on current operations 28 560 556 - 28 560 556 Interest on sight foreign currency assets 26 245 683 2 511 692 23 733 991 Commissions on non-resident foreign banknotes 2 499 876 2 527 886 -28 010 Discount spread on foreign currency securities 3 079 860 2 976 878 102 982 Commissions on banks’ transfer of foreign banknotes 3 703 631 4 543 917 -840 286 Write back of provisions on foreign currency funds entrusted 1 015 708 3 355 601 -2 339 893 for external management Gains on foreign currency funds entrusted for external management 6 373 128 954 651 5 418 477 Write back of provisions on available for sale securities in foreign currency 1 333 733 394 328 939 405 Other proceeds 3 875 208 653 700 3 221 508
Note 31: Proceeds on transactions with international organisations This involves proceeds entered with respect to operations with the IMF. They went up slightly from one year to the next, coming to 4.7 MTD at the end of 2019 financial year compared to 4.6 MTD a year earlier. They are detailed as follows: (In dinars) 2019 2018 Variation
Proceeds on transactions with international organisations 4 695 075 4 567 412 127 663 Remuneration / reserve position at the IMF 3 955 199 3 880 467 74 732 Interest on assets in SDR at IMF 702 270 642 629 59 641 Interest on SDR investment 37 606 44 316 -6 710
Note 32: Miscellaneous proceeds This item posted an increase of 3.4 MTD or 58.7% following, mainly, the increase in the remaining amount from unused budget allocations.
Central Bank of Tunisia : Financial statements –2019 37 2019 2018 Variation
Miscellaneous proceeds 9 247 801 5 826 874 3 420 927 Income from shareholding securities 3 459 853 3 225 284 234 569 Cost recovery 686 518 776 365 -89 847 Proceeds from services related to gross payment system 311 587 311 365 222
Write back of unused budget expenditure 3 151 110 893 511 2 257 599 Recovery of complementary retirement pensions for 31 600 25 225 6 375 seconded staff Commissions on sale of gold to jewellers 39 642 52 637 -12 995 Net proceeds on fixed asset transfers and other gains on non- 322 521 - 322 521 recurring or exceptional items Other proceeds 1 244 970 542 487 702 483
Note 33: Costs related to money market intervention This heading holds, mainly, costs on securities purchased firm, which increased by 10.1 MTD from one year to the next, following the constitution of a provision for depreciation of securities worth an amount of 29.7MTD. (In dinars) 2019 2018 Variation
Costs related to intervention on the money market 31 659 808 19 870 510 11 789 298 Costs on outright purchased securities 29 721 703 19 632 457 10 089 246 Interests on 24-hour deposit facility 1 789 125 63 333 1 725 792 Other costs 148 980 174 720 -25 740
Note 34: Interests paid on transactions in foreign currency Interests on foreign currency transactions rose by 42.8 MTD from one end of year to the next, coming to 72.6 MTD at the end of the financial year 2019 compared to 29.8 MTD in December 2018. This increase is explained in major part by high interest paid in the framework of the intervention on the money market in foreign currency and to a lesser degree the increase in debit interest on sight assets in foreign currency. (In dinars) 2019 2018 Variation Interests paid on transactions in foreign currency 72 640 002 29 849 099 42 790 903 Interests on intervention on the money market in foreign currency 48 041 739 19 333 029 28 708 710 Costs of interests on term investment of foreign currency 10 040 043 4 645 348 5 394 695 Sight debit interests on foreign currencies 12 712 001 5 870 722 6 841 279 Interests on the deposit of the Central Bank of Libya 1 846 219 - 1 846 219
Central Bank of Tunisia : Financial statements –2019 38 Note 35: Other costs on transactions in foreign currency This item recorded a significant drop of 64.8 MTD due mainly to the non-recognition of exchange losses on current transactions as well as the reduction in charges relating to spread of premiums on foreign currency securities by 18.2 MTD. It is detailed as follows: (In dinars) 2019 2018 Variation Other costs on transactions in foreign currency 36 514 267 101 279 140 -64 764 873 Spreading of the premium on securities in foreign currency 26 587 097 44 758 792 -18 171 695 Exchange losses on current operations - 43 714 718 -43 714 718 Allotment to provisions for depreciation of foreign currency funds entrusted to external management 322 622 1 015 708 -693 086 Loss on foreign currency funds entrusted for external management 3 672 714 6 170 206 -2 497 492 Costs / securities at negative yield rate 965 971 1 517 690 -551 719 Allotment to provisions for depreciation of available for sale securities 408 374 1 133 496 -725 122
Fees / external reserves management mandate services 858 333 964 514 -106 181 Costs for management of foreign currency securities 517 470 568 146 -50 676 Loss / transfer of available for sale securities 463 887 1 077 061 -613 174
Fees for foreign currency account management 268 861 218 116 50 745
Loss on trading securities in foreign currency 1 349 756 - 1 349 756 Other costs in foreign currency 1 099 182 140 693 958 489
Note 36: Costs on transactions with international organisations This concerns mainly interests paid on loans granted by the AMF and the IMF and commissions on SDR allocations. (In dinars) 2019 2018 Variation
Costs on transactions with international organisations 9 942 186 10 567 064 -624 878 IMF commissions on SDR allocations 9 914 409 9 746 564 167 845 Interests on IMF loans - 493 126 -493 126 Interests on AMF loans 20 182 301 925 -281 743 Other costs 7 595 25 449 -17 854
Central Bank of Tunisia : Financial statements –2019 39 Note 37: Staff costs This heading came to 96 MTD at the end of December 2019 compared to 89 MTD at the end of December 2018, up by 7 MTD in line mainly with salary increases and new recruitments at the Bank. It is broken down as follows: (In dinars) 2019 2018 Variation Staff costs 96 050 844 89 046 334 7 004 510 Salaries, salaries complements and related costs 33 506 731 30 270 544 3 236 187 Bonuses 17 815 650 19 482 800 -1 667 150 Social costs 43 089 936 38 019 710 5 070 226 Of which supplementary retirement pension 27 401 836 24 132 800 3 269 036 Allotment to provisions for retirement benefits 317 480 - 317 480 Staff training costs 828 647 804 080 24 567 Taxes, duties and similar payments on remunerations 492 400 469 200 23 200
Worth of note that supplementary retirement pensions are entered into costs when paying them to retired agents. Note 38: General operating costs General operating costs came to 25.8 MTD at the end of December 2019 compared to 20.8 MTD in 2018. They are broken down as follows:
2019 2018 Variation
General operating costs 25 829 608 20 795 571 5 034 037 Purchases 4 883 294 3 533 200 1 350 094 Consummate purchases : consumables and stationery 4 860 558 3 525 199 1 335 359 Small tools purchases 22 736 8 001 14 735 External services 11 492 454 9 732 103 1 760 351 Maintenance, repair and maintenance contracts 4 927 140 4 017 534 909 606 Post office and telecommunications costs 3 291 354 2 846 110 445 244 Insurance premium 1 663 782 912 716 751 066 Advertising, publication and public relations’ fees 477 486 793 080 -315 594 Transport and customs clearance of foreign banknotes’ costs 472 538 613 646 -141 108 Miscellaneous costs 660 154 549 017 111 137 Miscellaneous ordinary costs 9 414 922 7 500 261 1 914 661 Taxes, duties and similar payments other than on remuneration 38 938 30 007 8 931
Central Bank of Tunisia : Financial statements –2019 40 Note 39: Costs to manufacture banknotes and coins Costs of banknotes and coins manufacturing incurred in the framework of the programme extending over the three years 2017-2019, totalled 6.6 MTD at the end of 2019 compared to 36.3 MTD over the previous financial year. Note 40: Allocation of provisions for risks and costs
Given its exposure to several risks (financial and operational) and as per the prudence principle, the BCT constituted over 2019 financial year, provisions for risks and costs with a global amount of 120.8 MTD compared to 47.8 MTD a year earlier, detailed as follows:
2019 2018 Allotment for risks and costs 120 759 083 47 833 000 Allotment to provisions in coverage of operational risk 89 000 000 39 000 000 Allotment to provisions / monetary policy operations 30 447 400 7 700 000 Allotment to provisions for files in litigation - 1 103 000 Other allotments 1 311 683 30 000
Worth of note that as of 2017 financial year, the BCT proceeded to gradual entry of provision for operational risk meant to cover risk of loss ensuing from inadequacy or failure attributable to procedures, staff or systems of the Bank, or with external risks, and this by retaining, as an indicator, a 15% rate from the net average financial proceed of the three previous financial years.
Central Bank of Tunisia : Financial statements –2019 41
REPORT OF THE AUDITORS
AUDITORS' REPORT ON THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2019
Statutory Auditor's Report to the Chairman of the Executive Board of Central Bank of Tunisia
Opinion
In compliance with the assignment confided to us, we have audited the financial statements of the Central Bank of Tunisia which comprise the balance sheet and the statement of off balance sheet commitments as at 31 December 2019, and the income statement, for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. These financial statements show a net balance sheet total of 34,558,191 thousand dinars and positive shareholders' equity of 1,401,287 thousand dinars, including the profit for the year amounting to 1,049,156 thousand dinars.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Central Bank of Tunisia as at 31 December 2019, and of the results of its operations for the year then ended in accordance with the generally accepted accounting principles in Tunisia, taking into account the specific nature of the Central Bank's activities.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing applicable in Tunisia. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Central Bank of Tunisia in accordance with the ethical requirements that are relevant to our audit of the financial statements in Tunisia and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of the Executive Board and those charged with governance for the Financial Statements
With respect to these financial statements, the Executive Board is responsible for their preparation and fair presentation in accordance with the generally accepted accounting principles in Tunisia, taking into account the specific nature of the Central Bank's activities and for such internal control as the Executive Board determines necessary to enable the preparation of financial statements that
Central Bank of Tunisia : Financial statements –2019 42 are free from material misstatement, whether due to fraud or error. Inpreparingthefinancialstatements,theExecutiveBoardisresponsibleforassessingtheBank'sabilityto continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Executive Board either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing Bank's financial process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error; and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Auditing Standards applicable in Tunisia will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with the International Auditing Standards applicable in Tunisia, we exercise professional judgment and maintain professional skepticism throughout the audit, we also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in thecircumstances. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Executive Board. - Conclude on the appropriateness of the Executive Board's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Central Bank's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Central Bank to cease to continue as a going concern.
Central Bank of Tunisia : Financial statements –2019 43 - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies m internal control that we identify during our audit.
Tunis, 17 March 2020 The Auditors
Central Bank of Tunisia : Financial statements –2019 44
BREAKDOWN OF RESULTS
BREAKDOWN OF RESULTS FOR 2019
In compliance with the terms of article 78 of Law 2016-35 dated 25 April 2016 providing for the Statute of the Central Bank of Tunisia, the Bank’s Executive Board at its meeting on 17 March 2020 approved breakdown of 2019 results as follows (Amounts in TND):
Results for the year 1,049,156,252 Special reserve 250,000,000 Reserves for social fund 5,000,000 Reserves for building the new headoffice 90,000,000
Share going to the State 704,156,252
The 250 MTD that was allocated to the special reserve to boost the bank’s equity is broken down as follows:
• 50 MTD to finance the investment budget as approved by the Bank’s Executive Board in its meeting held on 27 December 2019,
• 200 MTD with respect to the gradual constitution of reserves helping to face up to impacts of the expected migration towards IFRS in the framework of targets of the Bank’s strategic plan.
Central Bank of Tunisia : Financial statements –2019 45