PBL Financial Sector - Investment Partnership (II)

completed

The PBL is a central measure of the FC package of measures agreed as part of the reform partnership with Tunisia. It is intended to support the Tunisian government in (1) overcoming liquidity bottlenecks in the short term, (2) stabilizing public finances in the medium term and (3) implementing short- to medium-term reform efforts in the financial and banking sector and in capital market development. The development of capital and financial markets is intended to improve the framework conditions for micro, small and medium-sized enterprises (MSMEs) and private investors and to contribute to promoting employment. The reform and modernization measures required for this have been structured in a policy matrix in close alignment with the objectives of the Compact with Africa (G20 initiative) and the current FC portfolio and focus on the following subject areas: macroeconomic framework conditions; financial sector (e.g. legal regulation and implementation of deposit guarantee funds and credit bureaus, restructuring of public instruments for refinancing MSMEs); capital markets. The policy matrix is critically reviewed annually and gradually developed further with the Tunisian side. The prerequisite for disbursement of the promotional loan is the fulfillment of the indicators from the policy matrix for 2019.