Tunisia - Line of Credit to “Banque de l’Habitat”

The present project is a € 80 million credit line to finance sub-projects for the construction of economic and social housing, their acquisition by low-income households and intermediaries and the subdivision and development of residential land. The line of credit will contribute to the implementation of the Tunisian Government's housing policy. It aims to increase the availability of resources for the financing of economic and social housing and as a result, to improve the supply of this category of housing, the inadequacy of which remains one of the major problems of the housing sector in Tunisia. The intervention focuses on the construction of 1219 social and economic housing units in 13 urban agglomerations and the financing of the purchase of housing by nearly 3091 households; they also include the acquisition and subdivision of urban land for the construction of social and economic housing. The credit line will be accompanied by an institutional support program to enable BH to set up a financial risk management unit. This support from the Bank will improve BH's management capabilities by enabling it to define the tasks to be entrusted to this structure as well as the characteristics of the equipment, system and personnel to be set up in this context. The purpose of this technical assistance is to enable BH to have the appropriate instruments of management capable of providing adequate protection of its liquidity, solvency, net income and the quality of its commitments of the risk impacts arising in his activity.