Need to reform bond market (BCT Governor)

"The top priority today at the financial level is to change the bond market which is no longer adapted to our country's development," said Mr. Mustapha Kamel Nabli, Governor of the Central Bank of Tunisia (BCT). Speaking on Saturday at the 26th Business Days, Mr.  Nabli stressed the need to introduce institutional and functional reforms in this market for greater efficiency. Analysing the market situation, the BCT Governor identified several shortcomings related mainly to flexibility and transparency. According to Mr. Nabli, reforms are needed since   Tunisia's financial system generally suffers from the same shortcomings, despite the reforms made in recent years. He proposed, for that purpose, to conduct "a major financial revolution," involving all this market's players (banks, stock markets, insurance companies, brokers) to improve its operating procedures which is likely to develop the financial landscape in Tunisia. Working groups have been created to this end in  various financial structures; they are tasked with identifying gaps in the first place and defining new strategies to be adopted in this process, he added. Speaking of the country's economic situation, Mr. Nabli argued that "the current situation of the country is very difficult" and requires resorting to all available mechanisms (monetary, budget policies) to overcome this situation. He reminded that the BCT, whose scope of action has become limited, dropped twice this year the main interest rate from 4.5% to 4% and to 3.5%, to support companies facing difficulties, in particular, and preserve the country's economic fabric, in general.