(Ecofin Agency) - The European Bank for Reconstruction and Development (EBRD) has committed under a risk-sharing mechanism to guarantee up to 50% TND20 million loan ($7.3 million) granted by Attijari Bank Tunisia to the microfinance institution Enda Tamweel.
This facility will cover the liquidity needs of Tunisian private sector companies affected by the coronavirus pandemic and seeking financial support to bounce back. Special attention will be given "to local enterprises that generate the majority of their income from tourism, hotels, services, transport and other sectors that have been heavily affected," the EBRD said in a briefing note.
This support is announced at the same time a study by the International Finance Corporation in July 2020, on the impact of the covid-19 crisis on the private sector in Tunisia, showed that 88.8% of companies suffered a decline in turnover in April 2020 compared to April 2019. Of all SMEs, exporting companies have been more affected.
The agreement concluded with the EBRD will strengthen access to financing for Tunisian micro, small and medium enterprises (MSMEs).