Announcement of Ten Million US Dollars Loan in Tunisia on November 26, 1969

• INTERNATIONAL BANK F? c:or'\JS'TRUCT"f ON Af\JD OEVELOPl\liENT 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Releas~ No. 69/70 Subject: $10 million loan in November 26, 1969 Tunisia The World Bank has approved a loan equivalent to $10 million to Societe Nationale d'Investissement (SNI), a devel~pment finance company in Tunisia. The loan will provide nearly half the funds SNI expects to need during the next 18 months for loans and investments in tourist and industrial enterprises in Tunisia. This will be the Bank's third loan to SNI, bringing the total lent to • $25 million. In addition the Bank's affiliate, the International Finance Corporation {IFC), invested the equivalent of $570,000 in SNI's share capital in 1966. SNI is the principal source of long-term loan and equity finance 1or pri- vate industrial and tourism enterprises in Tunisia. During the three years 1966-68, it assisted over 100 different companies with 34 equity investments and 93 loans totaling the equivalent of $18 million, often involving extensive marketing and financial counseling. When completed, the projects financed will account for more than half the amount of all private investment in manufacturing and tourism in Tunisia during 1966-68. They will lead to substantial savings or earnings of foreign exchange and will previde new employment for nearly 4,000. SNI's operations expanded significantly in 1967 and 1968 when total loans and investments amounted to the equivalent of $14.4 million. Much of the in- • crease was due to the booming tourist sect~r which accounted for 421 of SNI's /more Bank P.a.. Re. 69/70 • Tunisia - Dev. Fin. Ct,. total ~ s , lffllinly f~r hotels. - 2 - Recently SNI j~ined with IFC and ~ther T'uJl.ls.ia.n and ford.gn illYea.tora in pt'fJlllttiog the establishment of COFITnUR, a • MW l n - ~ t - ~ speculizing in ~quity inves.t.men.ts in and loans t~ hfftel ~nt~rpr~;. SHI b the larg~ Tunisian instituti~l shart!holder in °-'El:tWR. SMI plans bl o:pmld further its .. financing activities and in 1969 its ..dil"@Ctors a~orized t.he filwmcing t,f public enterprises up to a limit of ?.5i., r,f .i.ts portfolia. However, SNI. will continue to direct the major thrust ot its activ.ities to· the private sector. SNI nt,W hns a sizable backlog of projects, ~nd in the 1\-year period ·h.e~'i.nning in Dooembe-r 1969 ,· it plans to commit the equivalent of about ,$.20 million., of which about $6 million will be for local currency expendi· tur~s. Tl'M! BAftk lftan will provide $10 million ttf the total rettuired; r~iAh Cov:crnment lo;,n. of $5 million is· under consid~ration; and SNI will A • rrovi~ thP- r~moinder from ~o.rnings and local b(,rrowing. T~ IA.an. to SHI will be guarant~d by tM Republic of Tunisia. It will be..~r i.nter~s.t ~f i7. per annmn. The initial amortization schedule, providing for repayment over 15 years, will be modified as necessary to reflect the repayments to SNI of loans made out of the proceeds of the Bank loan. - 0 - •