By Nibal Zgheib
The European Bank for Reconstruction and Development (EBRD) is increasing access to finance for Tunisian businesses with the provision of a €20 million(US$24.22million) Risk Sharing Framework (RSF) to Banque Attijari Tunisia, one of the largest banks in the country.
Since the outbreak of the coronavirus pandemic, existing challenges to access funding and liquidity have become even more acute and further constraining the growth of many private businesses.
The RSF is one of three core financing frameworks of the EBRD’s Small Business Initiative a programme dedicated to supporting and developing local private companies. The EBRD offers partner banks funded or unfunded risk participation schemes in US dollars, euros or local currency, taking on a part of the risk of the sub-loans extended by partner banks to clients.
The two institutions also signed an International Swaps and Derivatives Association (ISDA) Master Agreement that will allow them to conclude future operations on financial market instruments.
Since the start of its operations in Tunisia in 2012, the EBRD has invested close to €1.2 billion across 52 projects in the country, and supported over 1,200 SMEs through EU-funded technical assistance.
