The CGAP Microfinance Blog, which is operated by US-based think tank CGAP (Consultative Group to Assist the Poor), recently posted an article by Mohammed Khaled, CGAP representative for the Middle East-North Africa Region, that explores the impact of the recent leadership change in Tunisia on microfinance regulation in the country.
Microcredit law was first put into place in Tunisia in 1999 and included a 5 percent ceiling on annual interest rates, which did not allow “any of the Tunisia’s 280+ microcredit associations which were established by the Governmental Tunisian Bank of Solidarity (BTS) to become sustainable” according to Mr Khaled . Mr Khaled argues that new microfinance regulation is needed to establish the following: the removal of the interest rate cap; permission for the provision of financial services beyond credit such as savings, insurance and money transfers; legalization of different institutional types such as associations, nonprofits, for-profit companies, microfinance banks and commercial banks; respect and implementation of client protection principles by all providers; a credit bureau with mandatory participation for all new clients; and the appointment of the central bank as the regulator of the microfinance sector.
Mr Khaled’s article can be found at: http://microfinance.cgap.org/2011/04/29/microfinance-regulation-in-post-revolution-tunisia/
By: Alexandra Pattee, Research Associate
About CGAP (Consultative Group to Assist the Poor): Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center dedicated to facilitating the provision of financial access to poor people worldwide. CGAP is supported by approximately thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors.
Sources and Resources:
 CGAP Microfinance Blog, “Microfinance Regulation in Post Revolution Tunisia”, http://microfinance.cgap.org/2011/04/29/microfinance-regulation-in-post-revolution-tunisia/
MicroCapital.org Article, May 10, 2011, “CGAP (Consultative Group to Assist the Poor) Microfinance Blog Discusses Role of Mobile Phones in Integrating Savings, Payments, Budgeting Services”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-microfinance-blog-discusses-role-of-mobile-phones-in-integrating-savings-payments-budgeting-services/
MicroCapital.org Article, May 3, 2011. “CGAP (Consultative Group to Assist the Poor) Microfinance Blog Examines Role of Transparency in Strengthening the Microfinance Sector”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-microfinance-blog-examines-role-of-transparency-in-strengthening-the-microfinance-sector/
MicroCapital.org Article, April 25, 2011, “CGAP (Consultative Group to Assist the Poor) Explores Savings On Microfinance Blog”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-explores-savings-on-microfinance-blog/
MicroCapital.org Article, April 26, 2011, “CGAP (Consultative Group to Assist the Poor) Microfinance Blog Explores Effects of Arab Upheaval on Microfinance Institutions (MFIs)”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-microfinance-blog-explores-effects-of-arab-upheaval-on-microfinance-institutions-mfis/
MicroCapital.org Article, February 15, 2011, “CGAP (Consultative Group to Assist the Poor) Explores Over-Indebtedness in Microfinance Through New Blog Series”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-explores-over-indebtedness-in-microfinance-through-new-blog-series/
MicroCapital Universe Profile: CGAP (Consultative Group to Assist the Poor), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+%28Consultative+Group+to+Assist+the+Poor%29
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