Announcement of Tunisia Receives Thirty-Five Million Dollars Loan for Industrial Finance Project on December 23, 1977

·-.N'orld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE 78/31 December 23, 1977 TUNISIA RECEIVES $35 MILLION LOAN FOR INDUSTRIAL FINANCE PROJECT The World Bank has approved a loan of $35 million to Tunisia to help in the expansion of industrial enterprises. The project consists of two components. The first is a loan of $30 million to Banque de Oeveloppement Economique de Tunisie (BOET), including $2 million to be earmarked for financing the expansion of existing small scale enterprises (SSEs). The second component is a line of credit of $5 million to the Government to provide financial and technical assistance to newly created SSEs. Through ·this project, the Bank wi.11 continue helping BOET to improve its financia, management and portfolio, and will help the Government to prepare a sound institutional basis for financial and technical assistance • for SSE development throughout Tunisia. Sub-projects financed by the proceeds of the loan will contribute to employment creation, export promotion, develop- ment of enterepreneurship and decentralization of industrial activities. The SSE component of the project is expected to finance between 50 and 60 new sub- projects, and 20 to 30 sub-projects that are being expanded. It is expected to create about 2,300 new·jobs at an average cost per job created of about $7,000. The $30 million loan will be repayable in 13 years, including a 4-year grace per!od, on a level principal payment basis, interest will. be at 7.9 percent per year. The $5 million loan is repayable in 13 years, including 4 years of grace, on a level principal payment basis, interest will be at 7.9 percent per year. The $30 mi 11 ion loan wl 11 be implemented by Banque de Develc>ppement Econom i que de Tunis i e. The $S mi11t on 1oan wi 11 be I mp 1emented by Agence de Promotion des lnvestissements and by participating banks. • Note: Money figures are expressed in U.S. dollar equivalents .