The May visit by IMF Deputy Managing Director Murilo Portugal saw him deliver a combination of praise for efforts to strengthen Tunisia’s banking sector, with warnings regarding the continuing worry over non-performing loan (NPL) levels in the system. Banking sector reform was highlighted as a priority in the 11th Presidential Plan, which started this year and will conclude in 2011. The Central Bank, Banque Centrale de Tunisie (BCT), is working to implement Basel II requirements across the banking system and driving up standards of transparency and governance, as well as tackling the high levels of NPLs. As Portugal from the IMF stated: “I share with the authorities the view that strengthening the financial sector is a priority. In particular, efforts are underway to reduce the level of NPLs. I am encouraged by the progress in the implementation of most of the recommendations of the Financial Sector Assessment Program conducted in
