Announcement of Tunisia to Expand Small and Medium Scale Industry and Boost Exports on February 18, 1988

FOR IMMEDIATE RELEASE 4 World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 88/46 Contact: Fawzi Rihane (202) 473-2675 TUNISIA TO EXPAND SMALL AND MEDIUM SCALE INDUSTRY, BOOST EXPORTS WASHINGTON, February 18, 1988 -- Tunisia will use a $28 million World Bank loan to further develop its small and medium scale industries. The project is part of the country's overall effort to foster industrial entrepreneurship and to generate employment in economically sound projects at a relatively low cost. The project also builds on the successful completion of two earlier projects in the sector and includes a line of credit of $27,5 million divided among three connnercial banks (Banque de Tunisie, Banque du Sud and Societe Tunisienne de Banque) and two development banks (Banque de Developpement Economique de Tunisie and Banque de Tunisie et des Emirate d'Investissement). Technical assistance will be provided to industries to help them formulate and design investment projects and resolve managerial and technical problems. The appraisal and supervision of the participating banks will be improved. Small and medium scale industries represent about 85 percent of all manufacturing enterprises in Tunisia and employ about 65 percent of the labor force in the manufacturing sector. The World Bank loan is for 17 years, including four years of grace, with a variable interest rate, currently 7.72 percent, linked to the cost of the Bank's borrowings. It carries an annual connnitment charge of 0.75 percent on the undisbursed balances. NOTE: Money figures are in U.S. dollar equivalents.