Announcement of Tunisia to Expand Export Industries with Fifty Million Dollars World Bank Loan on April 29, 1985

_, . World Bank 1818 H Street, N.W ., Washington , D .C. 20433, U.S.A. BANK NEWS RELEASE NO. 85/52 Contact: Fawzi Rihane April 29, 1985 (202) 477-5325 TUNISIA TO EXPAND EXPORT INDUSTRIES WITH $50 MILLION WORLD BANK LOAN Tunisia plans to diversify and expand its exports with the help of a $50 million loan from the World Bank. The loan will provide a line of credit to three major financial institutions in the country, the Banque de Developpement Economique de Tunisie, the Banque Tuniso-Koweitienne de Developpement, and the Societe Tuniso-Seoudienne d'Investissement et de Developpement. The banks will use the funds for export-oriented projects which have a direct impact on production and employment. Development of the manufacturing sector offers particularly good opportunities, according to economic experts. The project supports the government's overall goal to reduce the country's reliance on petrolemn exports and readjust its economic base by increasing and diversifying manufactured exports. A fund to finance marketing and promotion studies will be developed to assist entrepreneurs interested in producing exports. The fund will provide foreign ·· currency, through loans or grants, to enterprises that promote new products or attempt to enter new markets. Technical assistance will be provided to the Compagnie Tunisienne d'Assurance de Commerce Exterieur, which was created in 1984 to provide export credit insurance. The World Bank loan is for 17 years, including four years of grace, with a variable interest rate, currently 9.29 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on undisbursed balances. NOTE: Money figures are expressed in U.S. dollar equivalents.