Tunisia: Govt reforms agricultural finance promotion policy

May 14, 2012

The Tunisian funding policy for agriculture has undergone a series of reforms in the past few years aimed at contributing to the sector's growth.

The Tunisian funding policy for agriculture has undergone a series of reforms in the past few years aimed at contributing to the sector's growth.

These reforms - undertaken since the 1980s - have translated into a disengagement of the State and a clear-cut separation between credit and assistance, New Medit newspaper reports.

However, the banking system has not become stronger in funding private investment and farmers are poorly integrated in the institutional funding system.

The bank credit tends to focus on large farms that can provide the necessary guarantees.

According to official figures published by La Presse newspaper, the agricultural sector only accounts for five percent of overall credits to the economy, although it contributes to more than ten percent of gross domestic product.

This is why, adds La Presse, the government is working on a new policy to promote the agricultural sector based on three axis. These are direct incentives towards integrated systems with a focus on support for farmers in terms of management, guaranty farmers minimum revenues and encourage agricultural activity in terms of financial support.ADNFCR-2976-ID-801361918-ADNFCR