Announcement of a World Bank Loan to Tunisia for a Private Investment Credit Project on December 9, 1993

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. * Telephone: (202) 477-1234 BANK NEWS RELEASE 94/38 MENA CONTACT: JEANNIE YAMINE (202)473-2318 TUNISIA: PRIVATE INVESTMENT CREDIT PROJECT The following is information on a project approved by the World Bank's Board. DATE: December 9, 1993 WORLD BANK GROUP SUPPORT: World Bank loan for $120 million in the aggregate consisting of loans to the Republic of Tunisia and 9 financial institutions (FIs). Terms for the loan to the Republic of Tunisia and 3 FIs are 17 years, including 5 years grace period, at the Bank's standard variable interest rate. Terms for six FIs are 17 years, including 4 years grace period, at the Bank's standard variable rate. TOTAL PROJECT COST: $120 million BENEFICIARIES: Republic of Tunisia ($50 million); Arab Tunisian Bank ($6 million); Banque de Developpement Economique de Tunisie ($12 million); Banque Internationale Arabe de Tunisie ($8 million); Banque de Tunisie et des Emirats d'Investissement ($10 million); Credit Foncier Commercial de Tunisie ($7 million); Societe Tuniso-Seoudienne d'Investissement et de Developpement ($10 million); Tunisie Leasing ($6 million); Union Bancaire pour le Commerce et l'Industrie ($7 million); Union Tunisienne de Leasing ($4 million). DESCRIPTION: The project objectives are to provide financially sound banks and financial leasing companies access to term resources at market rates, to finance private firms during the current transitional period of emerging long- term capital markets. By including a wide range of FIs, the aim is also to promote sound medium and long-term lending through the financial system. The project consists of 9 direct lines of credit to eligible FIs and an apex loan to the Republic of Tunisia for on-lending and re-financing purposes. Another project component is the provision of technical assistance and training for the FIs to strengthen capacity for the monitoring of risk assets.