Release date: 20 February 2024
Promoter – Financial Intermediary
ACCEPTABLE BANK(S)Location
Description
The project consists in a double-intermediated facility with the Republic of Tunisia to support the economic recovery and resilience of the country.
Additionality and Impact
The proposed facility (the "Facility") concerns a Multiple Beneficiary Intermediated Loan to the Republic of Tunisia to contribute to the recovery, resilience, and growth of the Tunisian economy by enhancing access to finance for micro, small and medium-sized enterprises ("MSMEs") and Mid-caps. The facility would support their investment and/or working capital needs in the post Covid-19 relaunch of the economy, while facing new challenges ranging from political uncertainty, supply chain disruptions due to the war in Ukraine and high inflation. It would contribute towards addressing the market failure of imperfect information and the obstacles to access to finance that MSMEs are confronted with. At least 70% of funds would be allocated to MSMEs, and the remainder may be available to Mid-caps. The double-intermediation structure will allow final beneficiaries to benefit from financing in local currency on a longer term than what is currently available on the Tunisian market.
The Facility is aligned with the Neighbourhood, Development and International Cooperation Instrument's ("NDICI") geographical pillar for the neighbourhood and its development priorities with regards to prosperity as it promotes sustainable and inclusive growth, decent jobs and private sector engagement by fostering access to and effective use of financial services by MSMEs. Furthermore, the Facility would support EFSD+'s development priorities, in particular c through leveraging private sector financing, with a particular focus on MSMEs and addressing bottlenecks to private investments including loans to MSMEs. The Facility contributes to the Team Europe Initiative ("TEI") for "Jobs through trade and investment in the Southern Neighbourhood". The Facility shares the development priorities cited in the TEI for the Southern Neighbourhood that aim to foster decent job creation and inclusive economic growth through investment and inclusive entrepreneurship. The project supports the development priorities of the Renewed Partnership with the Southern Neighbourhood and its Economic and Investment Plan that aim to expand financial inclusion through investments by MSMEs.
Objectives
The aim is to improve access to finance for micro, small, medium-sized enterprises (MSMEs) and mid-caps. The facility will support the investment and/or working capital needs of the final beneficiaries.
Sector(s)
- Credit lines - Credit lines
Under Global Europe NDICI guarantee
Under EFSD+ Guarantee
Proposed EIB finance (Approximate amount)
EUR 170 million
Total cost (Approximate amount)
not applicable
Environmental aspects
The borrower has to take all the requisite measures to ensure that the procedures including procurement procedures carried out by the final beneficiaries for the sub-projects receiving EIB finance will comply with national legislation and the ElB's Environmental and Social Standards as well as international treaties and conventions signed and ratified by or otherwise applicable and binding in the country.
Procurement
The borrower has to take all requisite measures to ensure that any procurement procedures carried out by final beneficiaries for the sub-projects that the EIB finances are in accordance with the EIB's Guide to Procurement.
Status
Signed - 16/01/2024
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).