In a recent report, Fitch noted that Tunisia’s banking sector is poised to continue supporting the nation’s growing financing needs in 2024, thanks to robust deposit growth (over 6%) and subdued credit demand. Despite a decrease in 2023, banks’ sovereign exposure is expected to rise slightly, correlating with the budget’s projected 20% hike in gross financing needs to TND 28.7 bln. The domestic sector is anticipated to cover up to 40% of this, with the remainder expected from external sources. The sector’s manageable reliance on central bank refinancing (less than TND 9 bln) underscores the prevailing adequate liquidity conditions.