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Thursday 16 July 2020
Home News Tunisia: Gov't beefs up amounts of loan guarantee mechanism to 1,500 million...

Tunisia: Gov’t beefs up amounts of loan guarantee mechanism to 1,500 million dinars

The government officially increased the amounts allocated under the loan guarantee facility meant to cushion the impact of the Covid-19.

Funds will go from 500 million TND to 1,500 million TND.

These loans are payable over a maximum of seven years, including a two-year grace period, as set out in government decree number 22 published in the Official Gazette of the Tunisian Republic n° 47 of the year 2020 and modifying decree n°6 issued in April 2020.

The government allocated 500 million TND to establishments and professionals in the tourism and handicrafts sector, including affected management companies. The deadline for making loans was extended to March 2021.

Under this decree, the State pledges itself to a two percentage point subsidy of the interest on loans provided that the rate charged by banks does not exceed the money market rate.

Relevant procedures are spelled out in a Finance Ministry decree.

These loans are subject neither to garnishment orders under the Code of Civil and Commercial Procedures nor to foreclosure by public accountants until late March 2021.

The government also committed 200 million dinars to the State budget in a bid to support the loan guarantee facility geared towards affected sectors and businesses.

The mechanism was created under Article 11 of the decree-law No. 2020-6 of April 16, 2020 issued by the Prime Minister.

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