Tunisia's Divisive New Law on Bounced Cheques

New Cheque Law and Its Impact

• 💡 A new law in Tunisia, implemented in February, aims to curb the problem of bounced cheques.
• ⚠️ Individuals who bounce a cheque and fail to settle the payment face banning from issuing cheques, steep fines, and potential jail time.

Challenges for Businesses

• 🎯 Wholesalers face a new 30,000 dinar payment limit for cheques, impacting transactions for goods like vegetables.
• 🛒 Vendors previously paid farmers partially upfront and the rest via cheques over several months, a practice now impossible.
• 📉 A wood seller reports a significant slowdown in business as suppliers no longer accept old cheques or credit, only upfront payments.

Prison Overcrowding and Judicial Strain

• ⚖️ Across Tunisia, approximately 450,000 people are wanted by police, with 7,000 imprisoned due to bounced cheques.
• ⛓️ Prisons are so overcrowded that sentences for bounced cheque offenses have had to be reduced.

Mixed Reactions to Stricter Penalties

• ✅ Some businesses welcome the tougher penalties, preferring the assurance of payment over accumulating bounced cheques.
• 📈 They see the new system and cheque traceability as providing a form of insurance.

Economic Concerns and Black Market Activity

• 📉 Economists fear the new law could further fragilize the Tunisian economy.
• 💰 There's a noted rise in cash payments, potentially fueling black market transactions.
• 📊 The Tunisian Central Bank reports a 7.8% increase in cash and coins in circulation compared to the previous year, which could exacerbate existing inflation.