KFW grants €140 million credit line to 1,600 Tunisian MSMEs
29/05/2020 13:54, TUNIS/Tunisia

(TAP)- The German Development Bank (KfW) will grant the Tunisian Government a credit line with preferential conditions worth €140 million (444 MD) for the benefit of 1,600 Micro, Small and Medium-sized Enterprises (MSMEs).

This credit line is part of the 2nd phase of the TPME II financing programme for the promotion of employment whose implementation agreements were signed on Friday, according to a KFW press release.

The amount will be served through 7 partner financial institutions spread over 4 banks: Amen Bank, Arab Tunisian Bank (ATB), Banque Nationale Agricole (BNA) and Société Tunisienne de Banque (STB) and 3 leasing companies namely Arab Tunisian Lease (ATL), Compagnie Internationale de Leasing (CIL) and Hannibal Lease (HL).

These institutions were selected following a transparent and fair procedure launched within the Tunisian financial sector, KFW adds.

The objective of the programme is to provide and sustainably use an appropriate offer of financial services for a minimum number of 1,600 MSMEs through partner financial institutions, according to the MSMEs' needs, particularly those operating in the 16 governorates with the lowest regional development index.

The TPME II programme is supplemented by a support measure in the form of a grant of up to €20 million dedicated to supporting the process of transformation of the banking and financial sector.

It will contribute to strengthening the financial sector and improving framework conditions for the private sector.

Technical assistance, as part of this support measure, will build the capacities of the partner financial institutions benefiting from the credit line to adapt their approaches targeted at MSMEs and thus better serve this range of customers.

This funding will also help partner financial institutions set up an Environmental and Social Management System (ESMS) adapted to the nature of their activity and the risks associated with the Programme.

It will also support the BCT in managing KfW's and donors' credit lines in a comprehensive manner.

The Programme contributes to the promotion of private investment and the reinforcement of the competitiveness of the private sector contributing to the sustainability and creation of employment.

It is part of the Investment Partnership between Germany and Tunisia signed in 2017 and follows on from the first credit line (TPME I).

Eligibility criteria for MSMEs that will benefit from this line of credit include a workforce of less than or equal to 200 employees and a turnover of less than or equal to 10 million dinars (MD).

Interested MSMEs may contact the above-mentioned financial institutions to find out about all the eligibility criteria and submit their loan applications directly to them.

The objective of this programme is to support the revival of the Tunisian economy, businesses and partner financial institutions to overcome this difficult period due to Covid 19, the same source said, recalling that the MSMEs which constitute the backbone of the Tunisian economy and which do not have sufficient and adequate access to funding from financial institutions, are hit hard by the adverse effects of the current situation threatening thousands of jobs.

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