Geert Bekaert and Campbell R. Harvey's
Chronology of Economic, Political and Financial Events in Emerging Markets
Tunisia
Date
Major Political and Economic Events
851206
The operational scope of foreign financial and banking institutions conducting business with nonresidents was extended.a3(first entry)
860719
Laws were amended to provide incentives for investments in agricultural and fisheries sectors.a3
860901
Incentives for investments in the tourism sector were introduced.a3
880815
The exchange rate guarantee scheme, which covered the risk of exchange rate fluctuations for service payments on loans channeled through the development institutions, expired.a3
880818
A law establishing the operating rules for international trade companies was issued. When more than two thirds of the equity of these companies is owned by nonresidents, the companies would be considered as nonresidents, not subject to the foreign exchange surrender requirement, but having to finance their local expenditure from convertible dinar or foreign currency accounts. Resident international trading companies with capital ownership of more than one half by residents would be allowed to offset their foreign exchange income and expenditure and borrow in foreign exchange.a3
880923
The minimum capital requirement for resident trading companies was set at D 150,000.a3
900319
An Investment Code for the tourism sector came into effect.a3
930106
Financial institutes and firms may borrow abroad up to D 10 million and D 3 million, respectively, without prior authorization from the Central Bank.a3
931007
Resident financial institutions and other resident enterprises were authorized to contract foreign currency loans from nonresidents up to a limit of D 10 million and D 3 million, respectively, per calendar year.a3
931018
Over and above health care costs, natural persons traveling abroad for health reasons and those accompanying them were authorized to transfer up to D750 and D500 for hiring expenses.a3
931210
Procedures were adopted on the various ways of transferring funds for current transactions mainly in connection with the activities of economic transactors.a3
931227
The Investment Incentive Law was promulgated.a3
940214
Law No. 93-120 promulgating the Investment Incentive Code, was implemented.a3
940228
Decrees listing the activities of sectors envisaged in the Investment Incentive Code and activities of areas benefiting from the incentives provided in the Investment Incentive Code were announced.a3
940310
A decree establishing investment incentives for new promoters was announced.a3
940412
The minimum capital requirements for international trading companies were established.a3
950628
Inward portfolio investment was partially liberalized.a3
9508
Tunisia issued a decree simplifying the purchase of shares in Tunisian companies by foreigners. Foreigners can buy up to 10% of a company on the Tunis Stock Exchange and up to 30% of an unlisted company without central bank approval. oo
970812
(Controls on direct investment) The amount of investment transfers that resident exporters may make freely abroad to support their exporting activities was doubled.a3
970903
(Controls on capital and money market instruments) Authorization is no longer required from the HIC for acquisitions of Tunisian securities entailing voting rights or shares in companies established in Tunisia between associates or shareholders in the same company who are foreign nationals, transacted by nonresident natural or juridical persons established in Tunisia, for securities and corporate shares that have already been acquired, within the limit 50% or more, provided as a guarantee for management activities of foreign directors in companies established in Tunisia.a3
980210
ADR effective date. (Company=BANQUE INTERNATIONALE ARABE DE TUNISIE - 144A, Exchange=PORTAL)a11
9803
A trade agreement between Tunisia and the EU came into effect.
9805
The minister for economic development pledged that Tunisia would privatize another 50 firms before year 2000.
9810
Two cement companies were successfully privatized, raising enough funds for the government.
9901
The government guaranteed repayment of outstanding debt of some 125 state companies over a 25-year period.
9902
The government proposed tax incentives for firms to list shares and introduced significant improvements in capital markets legislation.
9905
The Tunis Stock Exchange changed its settlement period from T+5 to T+4, as was requested by the Central Depositary. The Tunisian Finance Ministry issued new legislations eliminating taxes on interest derived from foreign currency investments in securities and deposits made by nonresidents.
990524
(Provisions specific to commercial banks and other credit institutions) Resident banks may extend dinar loans to offshore companies to finance local operational expenses. Such loans can not be used to purchase foreign exchange, and must be located in a special account.a3
9906
The government announced its privatization plans for the 1999/2000 fiscal year, short-listing three cement factories.
9907
Three state-controlled banks announced their intent to merge.
9908
Tunisa successfully debuted in Eurobond markets, offering its first euro-currency issue for 200 million euros.
9909
An IMF report on Tunisia praised its structural reforms, but warned that further structural changes and liberalization of economy were needed.
9910
President Ben Ali was reelected for his third five-year term, while his Constitutional Democratic Party retained a majority of seats in parliament.
9912
Tunisia's parliament passed the 2000 budget, forecasting 6% GDP growth in 2000 and decreasing the budget deficit to 2.7% GDP from an anticipated 3.6% in 1999.
200001
Tariffs for locally produced consumer goods were lifted following the EU association agreement. A Portuguese company purchased a cement factory in the Qabes region for US$230 million.
20000321
S&P raised Tunisia's foreign currency rating to 'BBB' with a stable outlook.
20000406
Former president Habib Bourguiba passed away.
200005
The ruling Constitutional Democratic Party (RCD) won the municipal elections decisively.
200006
The World Economic Forum's Africa Competitiveness Report ranked Tunisia at the top among 24 African countries.
200000
In the third quarter, Tunisia successfully launched the first global Samurai bond deal, including Japanese and non-Japanese investors, and Tunisia was the biggest African borrower to have investment grade status.
200000
In the forth quarter, the government expressed plans to sell an additional 20% stake of its shares of Tunisian Airlines Corporation through the market in a move to begin privatizing the airlines.
200100
The government increased interest rates in the first quarter to tighten monetary policy and control budget deficit.
200100
During the third quarter, the government released official projections for economic growth in the upcoming 2002-2006 fiscal periods.
200100
In the fourth quarter, the trade balance deteriorated.
200204 19 people - 11 of them German tourists - are killed in a bomb explosion at a synagogue in the resort of Djerba; later, al-Qaeda claims responsibility.
200205 President Ben Ali wins a referendum on constitutional changes which could help him stay in power for a fourth term.
200209 Head of Communist Workers' Party, Hamma Hammami, freed from prison on health grounds. He had been accused of belonging to an illegal organisation and inciting rebellion.
200403 A two-day summit of Arab leaders is postponed, indefinitely, by the hosts Tunisia. A Tunisian foreign ministry spokesman says there were "disagreements" at the preliminary meeting of Arab foreign ministers over issues to be discussed.
 
Year
Regulations on Foreign Investors
1998

Restrictions: Foreign investors are not allowed to hold more than 10% of the capital of listed companies or more than 30% of the capital of unlisted companies.

Taxation: None.a6

1999

Restrictions: The present exchange regulation guarantees free transfer of profits to non-residents if the company is listed on the permanent quotation of the BVM and fixes a non-foreign investment ceiling of 49.9%.

Taxation: None for individuals. For corporations capital gains are taxed at a rate of 35%.a7

last updated 7/10/04 by Jerome Mo, Duke University

tion of the BVM and fixes a non-foreign investment ceiling of 49.9%.

Taxation: None for individuals. For corporations capital gains are taxed at a rate of 35%.a7

last updated 7/10/04 by Jerome Mo, Duke University