Announcement of World Bank Approves Thirty Million Dollars for Agricultural Credit Program in Tunisia on June 30, 1980

FOR IMMEDIATE RELEASE -World Bank 1818 H Street. N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 80/133 June 30, 1980 WORLD BANK APP2'0V-ES $30 ~-; LLI ON FOR AGRICULTURAL CREDIT PROGRAM IN TUNISIA The World Bank has approved a $30 million loan to help finance farm credit and small-scale agro-industry investments in Tunisia. The $60.8 million lending program to be implemented by Banque Nationale de Tunisie, will help finance about 40% of the bank's projected three-year medium- and long-term credit program to small and medium-sized farmers with annual production valued at $5,000 or less, and also to production and service cooperatives, commercial farmers, and agro-industries. The project is a significant step towards improving the organizational structure and effectiveness of the agricultural lending operations of Banque Nationale de Tunisie. It is consistent with Tunisia's overall development strategy • to achieve self-sufficiency in food. The production of wheat, barley, pulses, vegetables, table olives, meat, milk, e~gs and wool is expected to increase through the use of better production methods and equipment, as provided for in the project. In addition, l, 100 permanent jobs and 900 seasonal jobs wi 11 be created thus helping to solve a growing unemployment problem in the country. In al 1, about 11,800 farm families will be affected by the project, and it is expected that their members' per capita income will increase substantially. The World Bank loan to Banque Nationale de Tunisie, is made with the guarantee of the Government of Tunisia. The loan is for 14 years, including 4 years of grace, with interest at 8.25% per annum. Banque Nationale de Tunisie will bear $10.8 mill ion of the costs. The Tunisian government and sub-borrowers will commit $6.9 mil lion and $13. 1 mill ion, respectiveiy . • NOTE: Money fig~ies are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T ECHN I CAL D A T A PROJECT: COUNTRY: Third Agricultural Credit Tunisia • TOTAL COST: $60.8 million BANK FINANCING: $30 mill ion for 14 years, including 4 years of grace, at an annual interest rate of 8.25% OTHER FINANCING: Banque Nationale de Tunisie (National Bank of Tunisia), $10.8 million; Government of Tunisia, $6.9 mi 11 ion; sub-borrowers, $13. l million IMPLEMENTING ORGANIZATION: Banque Notionale de Tunisie 19 rue de Paris Tunis, Tunisie Telex: 366 Cable: BANGAGRIC TUNIS PROJECT DESCRIPTION: It will finance about 40% of BNT's projected three-year medium- and long-term credit program to small and medium- sized farmers with annual farm production valued at $5,000 or less, production ,nd service cooperatives, commercial farmers and agro-industries. It wils also provide • for the strengthening of the bank's and Ministry of Agriculture's credit extension programs. PROCUREMENT: As contracts will be too small to justify international competitive bidding, farmers will buy agricultural equip- ment of their choice through existing competitive commercial channels. CONSULTANTS: Technical staff from the Ministry of Agriculture will assist Banque Nationale de Tunisie in certain technical aspects. ECONOMIC RATE OF RETURN: Between 18% and 92%, according to type of farm investment and agro-industries. ESTIMATED COMPLETION DATE: •