Tunisia - The Economy Ministry has requested a $70 million loan from the European Bank for Reconstruction and Development (EBRD), Finance Minister Sihem Boughdiri said on Tuesday.

She was speaking at a plenary session of the Assembly of People's Representatives (ARP) in Bardo, dedicated to the adoption of the law approving the exchange of letters of intent to amend the agreement between Tunisia and Italy on granting of a credit line for small and medium-sized enterprises.

The minister said that this financing would be used to renew the production equipment of the Tunisian steel and iron company ELFOULADH.

She added that the request for credit was made on January 10, 2024 after studying the effectiveness of the financing requested by the Ministry of Industry, Mines and Energy.

The finance minister said the government has worked to promote the Tunisian steel company ELFOULADH by including it among the projects to be studied by the joint Tunisian-Saudi commission, in the context of bilateral cooperation between the company and Saudi Arabia’s counterpart and the exchange of products between the two companies.

The ARP, on Tuesday, adopted the bill approving the exchange of memoranda amending the memorandum of understanding between Tunisia and Italy for the granting of a credit line in favour of small and medium-sized enterprises, with 111 votes in favour, 11 against and 3 abstentions,.

Law 60 for the year 2023 aims to increase to €73 million the amount of the Italian financing line launched on November 25, 2011 in favour of SMEs, by providing them with additional financing of almost €55 million.

This line of credit should further stimulate private investment and improve the economic competitiveness of SMEs, while also supporting the government's efforts to provide liquidity to businesses.

Tunisia will repay the loan over 40 years, including a grace period of 30 years at 0% interest.

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