Announcement of Ten Million US Dollars Loan for Tunisian industry on January 20, 1972

~~P- "~~'r' p..'f\ONAL 8,t <V,t ;ti ~ 01' ~ORLD BANK! 1818 H STREET. N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 72/2 Subject: $10.0 million loan for January 20, 1972 Tunisian industry The World Bank has approved a loan equivalent to $10. 0 million to the Societe Nationale d'Investissement (SNI), a development finance company in Tunisia. The loan will provide part of the fmds SNI will require to finance the import component of investments by enterprises in industry and tourism. This will be the Bank's fourth loan t~ SNI, bringing the total lent to $35 million. In a·dditiob, the International Finance Corporation a World Bank affiliate, has invested the equivalent of $1.2 million in SNI's share capital. SNI is the main source of medium and long-term loans and equity capital for private industrial and tourism enterprises in Tunisia. During the years • 1966-70, it approved 211 loans and equity investments totaling $41 million equivalent. Loan approvals in 1970 amounted to $12.8 million equivalent and were about twice as large as in 1968. Some 12% of SNI' s financing has been for manufacturing and 41% for tourism., Through the projects it has financed, in particular in the tourism sector, which is Tunisia's leading foreign exchange earner, SNI has made a substantial contribution to Tunisia's foreign exchange earnings. Until 1969, SNI did not finance public sector enterprises. Since then, it has approved eight ·1oans totaling $6.6 million for such enterprises. However, SNI will continue to have most of its activities in the private sector. The loan to SNI will be guaranteed by the Republic of Ttmisia. It will bear interest at 7~ per annum. The initial amortization schedule will be modified as necessary to reflect the repayments to SNI of loans made out of the proceeds of the Bank loan. While the Bank loan of $10.0 million will be applied to) the cost of imports for its operations, SNI will obtain the local currency requirements from its own resources and local borrowings. • Th~ World Bank began lending to Tunisia in 1962. The new loan is the thirteenth to Tunisia, bringing total Bank lending to $116. 3 million. The International Development Association also a Bank affiliate, has approved eight credits totaling $49.8 million. -o-