Tunisia Private Investment Credit Project

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The Private Investment Credit Project is designed to finance the needs of new and existing private enterprises by channeling funds through eligible financial institutions (FIs), including two financial leasing companies. The project includes: (a) direct lines of credit to nine FIs meeting minimum eligibility criteria to be on-lent for viable private investments; (b) a loan to the Republic of Tunisia: (i) to be passed as subsidiary loans to all FIs meeting minimum eligibility requirements; (ii) to refinance two project preparation facilities (PPFs) put in place on behalf of the Societe Tunisienne de Banque (STB), a large commercial bank, to install a new accounting system. The Central Bank of Tunisia will be the executing agency for the loan to the Republic of Tunisia. The loans could also be used to finance technical assistance needs to the FIs to enable them to set up or strengthen appraisal procedures, portfolio monitoring and work-out capabilities, and to private enterprises to develop corporate strategies. The funds would be committed over a three year period, 1994-1996.