Announcement of Small-Scale Industries in Tunisia will Receive World Bank Help on April 16, 1981

· ·i=oR 1MMEoiA.TE RELEASE • - _'. °.\,, ~ .. I' • c World Bank 1818 H Street, N.W ., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 81/71 April 16, 1981 SMALL-SCALE INDUSTRIES IN TUNISIA WILL RECEIVE WORLD BANK HELP The Tunisian government's comprehensive assistance program for small-scale industries will be supported by a World Bank loan of $30 mill ion, it was announced today. This is the ninth Bank loan to provide assistance to the industrial sector in Tunisia. Proceeds from the World Bank loan will be channeled through the Banque de Deve1oµpement Economique de Tunisie (BDET) and participating commercial banks. The resulting credit line will provide funds for about 130 small-scale industries. The $60.55 million project supports the Tunisian government's objectives of generating employment in the industrial sector and of encouraging the establish- • ment of industrial firms in the less developed regions of Tunisia, thus helping alleviate regional imbalances. About 5,200 new jobs are expected to be created by the various subprojects financed. In addition, the project will foster the development of a pool of industrial managers and technicians, for whom small enterprises serve as a training ground. The Investment Promotion Agency, a government body which provides technical assistance to small enterprises, tvill be responsible for reviewing all subprojects to ensure that they are technically, financially, and economically sound. The World Bank loan provides for technical assistance to the agency for staff training to facilitate this task. In addition to creating jobs, the project will establish institutional channels through which other aid organizations and lenders will be able to provide financing to small industries. The United Nations Development Programme and bilateral aid are expected to provide $900,000 toward the project cost. The World Bank loan is for 15-1/2 years, including 3 years of grace, with interest at 9.6% per annum. • NOTE: Money figures are expressed in U.S. dollar equivalents •