MSME Loan Programme for Employment Promotion II

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The MSME Credit Programme II project addresses the ongoing core problem of the Tunisian financial sector, the lack of capital resources for micro, small and medium-sized enterprises (MSMEs). Demand-oriented financial services are of great importance for the future development of the country and should make a significant contribution to reducing (youth) unemployment. The aim of the FC measure is to improve the sustainable provision and use of a demand-oriented range of financial services for MSMEs in urban and rural regions in Tunisia. The target group are Tunisian MSMEs, which have improved access to external capital and can thus expand their business activities and ultimately generate new jobs. To this end, the project will provide low-interest loans of up to EUR 140 million to seven qualified partner financial institutions via the Tunisian government as borrower to refinance their MSME business. The Tunisian central bank manages the credit line for the Tunisian government. In addition to the loan, an accompanying measure of EUR 20.0 million is available to support reform efforts in the banking and financial sector as well as partner financial institutions through targeted consulting efforts in the sustainable development and expansion of their MSME business.