Announcement of Fourteen Million US Dollars Loan for Tunisian Industry on January 25, 1973

(r .,,l~l"ERNATIE>NAL BANK FOR RECONSTRUCTION AND ,,D~/ELOPME~T l'\0 1.818 H STREET, N.W., WASHINGTON o. c. 20433 TELEPHONE: ~.XECUTIVE 3-fS3fSO Bank Pres~ Release No. 73/6 Subject: $14. 0 million loan'' for Tunisian January 25, 1973 industry il The World Bank has approved d loan equivalent to $14.0 million to the Societe · "Nationale d 'Investissemcnt (SNI), a development finance company in Tunisia. The '-. loan will provide part of the funds SNI will require to finance the import com- pon~~t of investments by enterprises in industry and tourism, through the end of 0 1974.1··· o I '!'his will be the Bank's fifth loan to SIN!, bring~ng the total lent to $49.0 Qlillion. In addition, th~ Internation~Ll. Finance Corporation, a World Bank affiliate, has invested= the equ:lvalent of $1.1 2 million in SNI 's share capital. 1 SNi. is the major"source of long-term local·currency and foreign exchange funds for Tunisian private enterprises in tourism and in the manufacturingv~ectors. · • G ~ During the years 1966-72, it approved over 300 loans and ~quity investmetits tot31ing $72 .O ~jllion equivalent. Loan ~pprovals in 1972 increased sharply to a record of $21. 0 million and ,were about twice as large as in 1971. Through the prcj ects it has financed., in particular in the tourism sector, SNI has made a sub- stantial co11tribution to Tunisia's foreign exchange earnings. It has also con- tributed to creating new employment opportunities. SNI's contribution to total industrial and tourism investment! in Tunisia has beer.. growing fast in the past few years. This is particularly so as regards investment in the private sector. SNI's contributions in 1972 are estimated to represent 22% in industry and 19% in tourism of Tunisia's total investments in these sectors,. The loan to SNI will be guarant_eed by the Republic of Tunisia. It will bear '.} interest at 7~% per ,-!lllnum. Ths ciiiidrtization .sch~dule will conform substantially to the aggregate of the amortization schedules of ioans made out of the proceeds of the Bank loan. While the Bank loan of $14.0 million will be applied to the financ- ll . ing of imports of, in4ustrial and . t:,ourism pr~:~ects, SNI will obtain the local cQ.f- · • rency requirements fran its own ~~scxirces, local borrowings and bilateral aid • The World Bank began lending to Tunisia in 1962. The new loan is ~he six- . ~ . u tzenth to Tunisia, l>ring:lng total Bank lending to $155. 6 million·. The Intema- o tional Development Association, a Bank affiliate, also has made nine credits totaling $58.7 million.