Tunisia - Fourth Line of Credit to Investment Bank of Tunisia and the Emirates (BTEI)

The proposed line of credit falls within the strategy framework defined by the Government in the Xth Development Plan aimed at strengthening the contribution of Tunisian banks in the financing of productive investment and development of the private sector, particularly SMEs. The line of credit is intended to strengthen the contribution of the private sector in fixed gross capital formation, which is expected to reach 60% by the end of the Xth plan in 2006. It will particularly affect the manufacturing industrial sector, which constitutes one of the key engines of growth, employment creation and balance of payments equilibrium. Estimates were made according to the reserve of projects and the expected outputs are: i) for tourism, fifteen (15) units of four (4) stars and ten (10) three-(3)-star hotel units will be constructed or refurbished. These hotel units will enhance accommodation capacity by 14,500 beds; ii) for industry and services, fifteen (15) industrial plants which will be chiefly created in construction materials sub-sector, food industry and commercial services. Industrial units and services will mainly entail new creations, expansions and renovations. The line of credit also comes in support to the BTEI’s efforts to strengthen long-term resources it needs in the new context of the Tunisian banking sector marked by an increasing competition. It is programmed to be implemented over three (3) years.