Management of funds
Tunis Re manages the following guarantee funds on behalf of
the Tunisian State:
The Exchange Equalisation Fund (EEF)
Context
The Exchange Equalisation Fund was implemented under Law 98-111 of 28 December 1998 relating to the 1999 Finance Law with the objective of providing cover against exchange rate fluctuations in order to encourage the use of foreign resources for the financing of the country’s economic and social development.The State supports
this risk because no market mechanisms existed to cover the exchange rate risk.
The operating procedures of the Exchange Equalization Fund, the conditions of intervention and the allocation of resources are set out in Decree No. 99-1649 of July 26, 1999.
The management of the fund has been assigned to Tunis Re since January 1999 following an agreement signed between the Ministry of Finance and the company.
Scope of intervention of the EEF
The protection against risk of currency fluctuation by the Exchange Equalization Fund consists in providing the bank with the reimbursement of the loan maturities both in interests and in capital at the exchange rate dinars/currency at the effective date of the loan.
How does the EEF work?
The guarantee provided by the fund for loan repayment, determination of banks’ & financial institutions’ contributions and the investment strategy of the fund’s resources are assured by a committee constituted by the Minister of Finance or his representative (chairman), two members of the Ministry of Finance and two members of the Ministry of Development and International Cooperation.
Tunis Re’s mission is to serve as the secretary of the committee, to coordinate the requests for loan coverage from banks and financial institutions, to communicate the decisions on the approved demands and to take the necessary measures for their implementation.
The Insured’s Guarantee Fund B37(IGF)
The scope of intervention of this fund has been dedicated mainly to the cases of insolvency or bankruptcy of insurance companies.
By Decree-Law No. 2011-40, this fund was extended to compensate claims that occurred during the 2011 popular movements.
By the Law No. 2019-24 of March 12, 2019, the Insured’s Guarantee Fund (IGF), has temporarily contributed and within the limits of its resources, to the compensation of material damages caused to companies and resulting from the floods that occurred in 2018 in the governorate of Nabeul. Download