In Tunisia, a recent banking reform has significantly impacted consumer purchasing habits, particularly affecting those who rely on instalment payments. Olfa Meriah, a frustrated consumer, exemplifies this challenge as she struggles to buy a smartphone in instalments due to the new restrictions on post-dated cheques. Historically, Tunisians have used cheques as a form of credit to make purchases over time, but the government’s reforms aim to revert cheques to their original purpose as immediate payment tools.
The average monthly salary in Tunisia is approximately 1,000 dinars ($320), making instalment payments crucial for many. However, with credit cards not widely available, consumers face difficulties in managing their finances under the new system. The reform seeks to curb consumer debt and improve the business climate, but it has disrupted household budgets and small businesses. Economist Ridha Chkoundali warns that this measure could severely impact consumption and economic growth, potentially leading to another recession.
The middle class, once a pillar of economic stability, has shrunk significantly since the 2011 revolution, from around 60% to 25% of the population. This demographic is particularly affected by the changes, as they often rely on instalment payments for essential and discretionary purchases. During Ramadan, when consumer spending typically increases, the new cheque regulations further strain household finances. Merchants, too, are feeling the pinch, with many opting to accept only cash due to the complexity and unreliability of the new cheque system.
Tunisia’s economic challenges are compounded by high national debt and inflation, with unemployment already at 16%. The reforms, intended to reduce fraudulent cheque practices, have introduced caps on cheque amounts and a QR code system to verify funds. However, these measures are seen as intrusive and have added complexity to transactions. As sales plummet, businesses like bookstores are considering closure, highlighting the broader economic implications of the banking reform.
The situation is critical, with experts warning of potential layoffs and increased unemployment if consumption continues to decline. As Tunisia navigates these economic challenges, the impact of the banking reforms on consumer behavior and small businesses remains a pressing concern.
