World Bank grants $500 million to support public banks

Oct 07, 2015

This sum will help the country handle the "economic aftershocks" of recent terrorist attacks.

The World Bank has approved a $500 million (€446 million) loan to support specific measures to restructure state owned banks as well as reducing the burden of bureaucratic procedures that have been "one of the key impediments to growth".

In a statement, it said: "We have accelerated our program of support for Tunisia in response to the economic aftershocks of the Bardo and Sousse terrorist attacks, while also supporting the urgent task of safeguarding the achievements of the political transition."

The Tunisian parliament approved in August a plan to restructure Tunisian public banks, weakened by years of economic and political unrest as well as the repercussions of the recent terrorist attacks.

The amount spent to recapitalise the two main state banks (la Société tunisienne de banque et la Banque de l’habitat) is estimated at around €440 million, according to Jeune Afrique.

Meanwhile, it was announced by Mohamed Fadhel Ben Omrane, chair of Nidaa Tounes parliamentary group at the House of People's Representatives (HPR), that a bank for the regions will be created next year in Tunisia.

He told TAP news agency that the aim of this institution will be to boost development financing in priority inland areas.

The bank will be created following a restructuring of several public banking sector institutions, including the Bank for small and medium-sized enterprises (BFPME) and Capital risk investment companies (SICAR). Its capital will stand at one billion dinars (€462 million).ADNFCR-2976-ID-801802482-ADNFCR