European Credit Line: A €170M Boost for Tunisian Economy
Last week, the Central Bank of Tunisia (BCT) hosted an information day on a new European credit line. We have more details on this opportunity, which falls under the cooperation between the European Union and Tunisia. The program, titled "Tunisia - Economic Recovery," has an envelope of €170M. The objective is to support Tunisian businesses that add value and have a social impact, to relaunch the economy sustainably.
The program is implemented by the BCT, in partnership with commercial banks and leasing companies. It is financed by the European Investment Bank, with the support of the European Commission, under the Team Europe - Sustainable Investments in Tunisia initiative aims to achieve this ambition by facilitating access to financing for investment projects (acquisition, renovation, extension...) and working capital for SMEs (with up to 250 employees, with a turnover or total balance sheet of €25M or less) and ETIs (with up to 3,000 employees). 30% of the funds are reserved for projects located in disadvantaged regions or led by women and young people. The terms are advantageous, with limited interest rates and long repayment periods of up to 10 years, including grace periods.
Of course, projects must be economically, technically, and environmentally viable. Note that certain categories of investments are not eligible for this credit line, including land acquisition (except if technically necessary for the investment, up to 10% of the total project cost), goodwill purchase, permits or mineral resource exploitation rights, and production rights in the agricultural sector, and tax payments, such as value-added tax and customs duties.
There are no restrictions on the origin of the goods or services acquired. Family businesses, partnerships, professionals, and associations with regular economic activity are eligible. Similarly, self-employed individuals registered with the National Business Register and holding a VAT code can benefit from this program. The total project cost should not exceed €25M or its equivalent in dinars.
In the coming months, a series of signings with leasing companies and banks is expected, which will enable companies seeking affordable financing to access it. This is the best way to support a struggling economic fabric in need of a breath of fresh air.
