Summary:

On 16 April 2025, an audit report for state-controlled BH Bank revealed concerning credit exposure to Tunisian olive oil group CHO that is under scrutiny following arrests of senior executives.  

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Published on the Financial Market Council (CMF) website, the report showed that the bank had extended 450.8 million dinars in credit to the group.  

According to IlBoursa, CHO belongs to Tunisian businessman Adel Ben Romdhane, a key figure in Tunisian olive oil exportation, who is thought to have fled to Spain after the arrest of his partner, Abdelaziz Makhloufi. 

Statutory auditors Emna Rachikou (FMBZ KPMG Tunisia) and Walid Ben Ayed (Consulting and Financial Firm) highlighted that this situation might increase BH Bank’s credit risk. The auditors recommended reclassifying this debt to a higher risk rating. 

The credit represents almost double CHO’s share capital, which stands at 238 million dinars at the end of 2024. It is also equivalent to 60% of BH Bank’s net income (744.2 million dinars), highlighting a high-risk concentration of credit for the bank. 

However, Tunisian economic experts ruled out the possibility of a systemic banking crisis, unless triggered by a sudden and massive withdrawal of deposits. 

Outlook: 

While some economists dismiss the likelihood of a systemic banking crisis being triggered by BH Bank’s credit exposure to CHO, the case has initiated important conversations regarding credit risk oversight and the governance of state-owned banks. 

BH Bank’s exposure to the CHO scandal could also undermine broader investor confidence, making both domestic and foreign creditors more cautious, particularly in undertaking large-scale projects.   

Without decisive reforms, this incident could become a catalyst for future instability, further weakening the banking system and eroding trust in its ability to manage risk effectively. 

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