TUNISIA – The European Bank for Reconstruction and Development (EBRD) has announced in a press release its plan to strengthen access to finance for Tunisian micro, small and medium-sized enterprises (MSMEs).
The Bank is providing Attijari Bank of Tunisia with an unfunded risk-sharing guarantee of 50 per cent on a loan to Enda Tamweel, the leading microfinance institution in the country.
Under the EBRD’s Risk Sharing Framework (RSF), Attijari Bank of Tunisia is extending a loan of up to TND20 million (US$7.33m) to Enda Tamweel for on-lending to local MSMEs which are its core customers and need financial support to cover their liquidity shortages due to the impact of the coronavirus pandemic.
The Covid-19 crisis is affecting Tunisian companies of all sizes, especially those that generate the majority of their revenues from the tourism, hospitality, services, transport and other heavily affected sectors.
Support for small business in the country is a priority for the EBRD in its work to strengthen the Tunisian economy.
The Bank’s investments aim to support Tunisia’s competitiveness by opening markets and strengthening governance, promote economic inclusion for women, young people and those living in remote areas, strengthen the financial sector’s resilience and support Tunisia’s green economy transition.
Since the start of its operations in Tunisia in 2012, the EBRD has invested close to €1.2 billion (US$1.44m) across 52 projects there and supported more than 1,200 SMEs through European Union-funded technical assistance to date.
The European Bank for Reconstruction and Development “EBRD” and Attijari bank Tunisia have signed an agreement on a risk-sharing facility (RSF) for an amount of €20 million (US$24.08m).
The two institutions also signed an International Swaps and Derivatives Association (ISDA) Master Agreement that will allow them to conclude future operations on financial market instruments.
The RSF is one of three core financing frameworks of the EBRD’s Small Business Initiative a program dedicated to supporting and developing local private companies.
The EBRD offers partner banks funded or unfunded risk participation schemes in US dollars, euros or local currency, taking on a part of the risk of the sub-loans extended by partner banks to clients.
The framework agreement signed according to ISDA standards will allow both institutions to conclude transactions in market instruments in the future.
Through these agreements, Attijari bank Tunisia and the EBRD continue their commitment to actively contribute to the acceleration of the growth of small and medium enterprises to strengthen their role in vitalizing the national economy and creating jobs, said a statement from EBRD.
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