FEMIP financing operations in Tunisia

European Investment Bank

Description

FEMIP:Financing in Algeria, Egypt, Gaza/West Bank, Israel,Jordan, Lebanon, Morocco, Syria, Tunisia and Turkey ? F a c i l i t y f o r E u r o - M e d i t e r r a n e a n I n v e s t m e n t a n d P a r t n e r s h i p ? F a c i l i t y f o r E u r o - M e d i t e r r a n e a n I n v e s t m e n t a n d P a r t n e r s h i pFEMIP financing operations in TunisiaTunisiahasmadeconsiderableprogressinraisinglivingstand Small and medium-sized enterprises (SMEs): Through linesardsandinimprovingsocialconditionsoverthepastdecade. of credit to local financial institutions, over EUR 815 million hasBetween 1970 and 2004, real income per capita grew from been mobilised for the establishment, extension and modern-USD700toUSD2850,whilepovertylevelsdeclinedfrom40to isation of businesses in Tunisia, particularly in the agri-food-10erentfheopulation. stuffs, industrial and tourism sectors. Risk capital operations(see below) have also directly benefited Tunisian SMEs.Thisperformancecomesonthebackofongoingstructuralre-formsandprudentmacroeconomicpoliciesthathavecreated Industry: This sector has absorbed nearly EUR 200 million in theaclimateoffinancialstabilityandenhancedtheresilienceof form of foreign direct investment for financing cement works,the economy. In particular,Tunisia’s economy has performed steel works, and metal-working and chemical plants.extremelywellinrecentyears,withanaveragegrowthrateof4.5erentetween000nd005.

Informations

• Publié par: EUROPEAN-INVESTMENT-BANK
• Nombre de lectures: 10
• Langue: English

Extrait

FEMIP financing operations in Tunisia

Small and medium-sized enterprises (SMEs):

Through lines

of credit to local financial institutions, over EUR 815 million has

been mobilised for the establishment, extension and modern-

isation of businesses in Tunisia, particularly in the agri-food-

stuffs, industrial and tourism sectors. Risk capital operations

(see below) have also directly benefited Tunisian SMEs.

Industry:

This sector has absorbed nearly EUR 200 million in the

form of foreign direct investment for financing cement works,

steel works, and metal-working and chemical plants.

Private equity:

Risk capital operations in Tunisia - financed from

the Community budget - have accounted for EUR 85 million

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.

In addition to part-financing certain funds of the Tuninvest

group, they have enabled some 250 Tunisian SMEs to be

co-financed via capital or quasi-capital injections denominated

in Tunisian dinars. The vast majority of these co-financing

operations have been undertaken in partnership with 13 Tunisian

risk capital investment companies (SICARs), in respect of which

the EIB is the leading international partner historically and in

terms of the amounts involved.

Transport and telecommunications:

The EIB has been par-

ticularly active in the road and rail transport sector by financ-

ing roads, motorways and railway and metro lines totalling

nearly EUR 600 million.

Energy:

The EIB has lent more than EUR 350 million for the

development and modernisation of the electricity and gas

sectors, for production, transport and distribution.

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Certain regional initiatives also cover Tunisia but are not included in these

statistics.

Tunisia has made considerable progress in raising living stand-

ards and in improving social conditions over the past decade.

Between 1970 and 2004, real income per capita grew from

USD 700 to USD 2 850, while poverty levels declined from 40 to

10 per cent of the population.

This performance comes on the back of ongoing structural re-

forms and prudent macroeconomic policies that have created

a climate of financial stability and enhanced the resilience of

the economy. In particular, Tunisia’s economy has performed

extremely well in recent years, with an average growth rate of

4.5 per cent between 2000 and 2005.

Despite these results further more radical reforms are needed,

especially in order to improve the business climate, bridge the

gap between labour supply and demand, consolidate macro-

economic policies and strengthen the financial sector.

Tunisia has opted for a strong economic partnership with the

European Union and made substantial efforts to address these

economic and financial challenges. The role of FEMIP is to support

Tunisia in its drive towards a modern competitive economy.

The EIB, Tunisia’s main external source of finance

The EIB’s first operations in Tunisia go back to 1978. To date,

loans totalling EUR 2 560 million have been signed, which makes

the EIB Tunisia’s main source of funds. In 2005 alone, loans to-

talling EUR 260 million were signed, compared with EUR 184

million in 2004.

An overall view of the EIB’s portfolio in Tunisia shows that

lending is consistently spread across the Bank’s traditional

areas of operation in the region:

• Fa c i l i t y f o r E u r o - M e d i t e r r a n e a n I n v e s t m e n t a n d P a r t n e r s h i p • Fa c i l i t y f o r E u r o - M e d i t e r r a n e a n I n v e s t m e n t a n d P a r t n e r s h i p

FEMIP:

Financing in Algeria, Egypt, Gaza/West Bank, Israel,

Jordan, Lebanon, Morocco, Syria, Tunisia and Turkey