ARP ratifies financing agreement between Tunisia and EIB

Tunis: The Assembly of People's Representatives (ARP) approved a bill, during a plenary session, on Tuesday, ratifying a funding agreement signed on March 18, between Tunisia and the European Investment Bank (EIB).This agreement pertains to a loan granted to Tunisia to contribute to creating a financing line benefiting small and medium-sized enterprises (SMEs), aiming to ensure economic recovery.In response to a query regarding the Bank for Financing Small and Medium Enterprises (BFPME), Minister of Economy and Planning Feriel Ouerghi recalled that a financing line of TND 20 million has been established within the framework of the 2024 finance law.This line is intended to promote granting short and medium-term loans to SMEs, under advantageous conditions.Ouerghi specified that the 2024 finance law also provides for an increase in the bank's capital by TND 59 million by converting a debt owed to the Tunisian state into a capital stake in the bank. This debt originated from a Japanese credit line retroc eded to the bank.She revealed that a task force has been created within the Ministry of Finance to monitor the restructuring of BFPME as part of a comprehensive approach. This team includes representatives from various ministerial departments, the Central Bank of Tunisia (BCT), and BFPME.Regarding management and operational loans granted by the Tunisian Guarantee Company (SOTUGAR) to support the financing of professionals and businesses affected by the COVID-19 crisis, the minister recalled that the company has approved guarantees for 2,470 loans worth TND 598.4 million since 2020.The EIB loan amounts to approximately pound 170 million (equivalent to TND 573 million) and will be dedicated to strengthened support for small and medium-sized enterprises.Among the objectives of this financing are addressing the liquidity needs of financial institutions (banks, leasing institutions) to enhance their contribution to economic financing and their role in consolidating the economic enterprises' role in nationa l economic development, job creation, export strengthening, and access to foreign markets.It covers several sectors including agriculture and fisheries, manufacturing industries, energy, environmental protection, transport, commerce, storage, new technologies, education, health, and the arts.Source: Agence Tunis Afrique Presse