Tunisia - Financial Sector Modernization Support Program

Project Summary

Approval Date	13 Jul 2016
Signature Date	14 Jul 2016
Planned Completion Date	31 Dec 2017
Last Disbursement Planned Date	31 Dec 2017
Sovereign / Non-Sovereign	Sovereign
Sector	Finance
DAC Sector Code	24030
Commitment	U.A 212,720,360.04
Status	Completion

Project General Description

The Financial Sector Modernization Support Programme (FSSMP) aims to help create the conditions for accelerated, resilient and inclusive economic growth by strengthening the role of the financial sector in financing the economy and vulnerable groups. The Programme contributes to the objectives of financing industrialisation, improving the quality of life of populations and agriculture, within the framework of the Five High Priorities. Through improving access to financial services for people and businesses, diversifying them and increasing the stability of the financial system, the programme will help to address Tunisia's main challenges, namely low growth, high unemployment and significant regional and social disparities. The PAMSFI is divided into two complementary components. The first, aimed at improving financial inclusion, will support reforms to develop microfinance, mobile financial services, facilitate access to credit for businesses in the regions, women and small farmers and new project leaders, especially young people. The second component will support reforms related to strengthening the resilience of the financial sector and the development of capital markets for more important and efficient financing of the economy.

Project Objectives

The programme aims to support the emergence of a new development model for Tunisia, in which the private sector can develop and create employment throughout Tunisia, and in which disadvantaged segments of the population can contribute to and benefit from growth. The specific objectives of the programme are to strengthen financial sector governance and deepen it through improving access to financial services for people and businesses and diversifying financial instruments.

Beneficiaries

The final beneficiary of the programme is the Tunisian population as a whole.

Participating Organization

Funding

African Development Bank

Implementing

Ministère des Finances

Information

IATI identifier	46002-P-TN-HZ0-002
Last Update	16 Aug 2022

Export

Contact Details

Name	MAHAMOUD HOUSSEIN Ismail
Email	i.mahamoudhoussein@afdb.org

Geographic Location

Country	Tunisia

Project Classification

Finance Type	Aid Loan Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	General Budget Support

Commitments

U.A 212,720,360

African Development Bank

U.A 212,720,360.04

Disbursements

Repayments (Interest & Loan)

Document Type	Language	Document
Project Completion Report	en	tunisia-financial-sector-modernization-support-programme-pamsfi-project-completion-report-103328
Appraisal report	en	TUNISIA - AR - PAMSFI
Project Completion Report	fr	TUNISIE RAP - PROGRAMME DAPPUI A MODERNISATION DU SECTEUR FINIANCIER PAMSFI BPPS FR
Appraisal report	fr	TUNISIE - RE - PAMSFI
Project Completion Report	en	viewer

Indicator	Indicator Measure	Target Year	Target Value	Actual Year	Actual Value
Financial inclusion ratio	%	2016	38	2018	30
Proportion of women microcredit beneficiaries (in relation to total outstanding loans)	%	2016	65	2018	57
Bank credit to the private sector as a percentage of GDP	%	2016	80	2018	80
Financial market's contribution to the financing of the economy	%	2016	10	2018	9,5
Adoption by the CM of the National Financial Inclusion Strategy (SNIF)	None	2016	Yes	2018	Partly achieved (50%)
Adoption by the Council of Ministers of the decree on the composition and operation of the financial inclusion observatory	None	2016	Yes	2018	Achieved
Issuance of an Order of the Minister of Finance on the fair treatment of customers of microfinance institutions	None	2016	Yes	2018	Achieved
Operationalization of the microcredit risk department	None	2016	Yes	2018	Achieved
Launch of the national inter-bank and inter-carrier telecom mobile payment product based on a platform managed by the SMT	None	2016	Yes	2018	Achieved
Approval of the pilot phase of the agricultural index insurance and the global agricultural insurance mechanism feasibility study	None	2016	Yes	2018	Achieved
Launch of a system via mobile networks for the payment of social transfers to benefit needy families	None	2016	Yes	2018	Not achieved
Adoption by the CM of a bill on establishment of the Regional Bank (BDR)	None	2016	Yes	2018	Partly achieved (50%)
Adoption by the steering committee of the institutional model for establishment of the Regional Bank (BDR)	None	2016	Yes	2018	Achieved
Adoption by the CM of a bill to amend the law on excessive interest rates for businesses	None	2016	Yes	2018	Achieved
Operationalization of the agreement between the BTS and the Ministry of Women’s Affairs for the launch of a financing product devoted to women entrepreneurs	None	2016	Yes	2018	Achieved
Extension by 3 years of the provisions of Article 22 of the 2015 Finance Law allowing venture capital companies to support the financial restructuring of companies	None	2016	Yes	2018	Achieved
Adoption by the ARP of the law amending Banking Law No. 2001-65 of July 2001 on credit institutions	None	2016	Yes	2018	Achieved
Adoption by the ARP of a law to amend Law 58-90 on the status of the BCT	None	2016	Yes	2018	Achieved
Adoption by the CM of the bill to amend the law reorganizing the financial market	None	2016	Yes	2018	Not Achieved
Adoption by the CM of the law on the Insurance Code	None	2016	Yes	2018	Partly achieved (50%)
Adoption of a decree establishing a treasury agency	None	2016	Yes	2018	Not Achieved
Signature of new terms of reference from primary dealers (SVTs)	None	2016	Yes	2018	Achieved
Establishment and publication of a yield curve	None	2016	Yes	2018	Achieved
Amendment of the Order of the Minister of Finance of 27 March 1996 fixing rates and methods of collecting royalties for stock exchange transactions	None	2016	Yes	2018	Achieved
Launch of a stock market access kit for SMEs	None	2016	Yes	2018	Achieved