Republic of Tunisia
| Loan No: | 572 | Interest Rate: | 3.0 % |
| Beneficiary: | Banque Tunisienne de Solidarité (BTS) | Grace Period: | 5 years |
| Project Cost: | KD 109.0 million | Maturity: | 22 years |
| Amount of Loan: | KD 30.0 million | Repayment: | 35 semi-annual installments |
| Date of Board Approval: | - | First Installment: | 5 years following the first disbursement |
| Date of Loan Agreement: | 2012-03-29 | Date of Loan Effectiveness: | 2012-12-17 |
Objectives:
The program aims at creating new jobs for qualified people, and holders of higher education degrees and vocational training certificates, who lack the financial resources and bank guarantees required for investment and creation of small projects in various sectors of the economy and regions. The program also aims at increasing BTS’ resources, thus enabling it to better contribute to the country’s economic activity and the creation of new jobs.
Description:
The program consists of providing loans of small amounts through BTS to contribute to the financing of small projects in various sectors of the economy. The small projects eligible for financing consist of shop furnishing, supply and installation of equipment and machinery, acquisition of means of transportation and communication, in addition to systems, programs and technical services needed for the establishment of new small projects, or expansion of existing projects, that are economically feasible and contribute effectively to the increase in income of the projects’ owners and workers.
Financing:
The Arab Fund’s loan covers about 14% of the total program cost. The contribution of the small loan beneficiaries to the total program cost is expected to reach about 8%, and that of the Tunisian Government about 19%. BTS will provide about 59% of the total amount required for the program.