|Approval Date||19 Oct 2016|
|Signature Date||27 Feb 2017|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
This project is a Trade Finance Line of Credit (TF LOC) of EUR 60 million to Housing Bank (BH) of Tunisia. This is the first of its kind in Tunisia and North Africa. The TF LOC is part of the AfDB trade finance program launched in 2013. This facility, which is a stable source of financing, will enable BH to have the necessary liquidity in foreign currency, in difficult economic times, to pre-finance the acquisition of energy products, construction equipment, fertilizers, and production in key sectors such as manufacturing, construction, health, education, services and agriculture. The TF LOC will provide BH with medium-term resources to strengthen and intensify the Tunisian financial sector, thereby improving the economic environment in general and the access to finance for SMEs in particular. These resources will thus support the efforts of SMEs to increase exports and conquer new markets, in a sluggish economic environment for the banking sector as a whole, characterized by the drying up of liquidity and the tightening of credit. The project involves also technical assistance (TA) of EUR 1 million to improve the risk management system of BH and build its capacity to finance SMEs.
The objective of this financing is to facilitate the Tunisian Housing Bank's strengthening of its international trade finance activities for small and medium-sized enterprises (SMEs) and for small and medium-sized industries (PMI). This line of credit should thus contribute to reinvigorating the economic and commercial exchanges of BH. It will also support growth in the Tunisian market and strengthen its presence in Africa.
The project is expected to benefit mainly the Tunisian Housing Bank (BH), small and medium-sized enterprises (SMEs) and small and medium-sized industries (PMI) operating in the key sectors identified. The key sectors targeted by the line of credit are manufacturing, construction, health, education, services and agriculture
African Development Bank
|Last Update||31 Oct 2019|