Small and medium-sized enterprises (SMEs) play a crucial role in the Tunisian economy, however, the COVID-19 pandemic and the ongoing conflict in Ukraine have created macroeconomic imbalances that have affected their performance and financial stability. To help mitigate these challenges, the World Bank has approved a $120 million loan for Tunisia to finance institutions that lend to eligible SMEs. The loan is a crucial part of the Tunisian government’s recovery plan, which includes important financial sector reforms to improve financial sector regulation, increase financial infrastructure, and promote financial inclusion.
According to Alexandre Arrobbio, the World Bank country manager for Tunisia, the loan will help support the government’s plan and provide much-needed assistance to SMEs during these challenging times. “Through this project and other financial sector support programs, the World Bank, together with our partners, are pursuing support for the Tunisian government’s recovery plan,” he said.
The COVID-19 pandemic has had a profound impact on businesses around the world, and Tunisia is no exception. Many SMEs in the country have struggled to stay afloat, and the World Bank’s loan will provide a much-needed lifeline to help them get back on their feet. Additionally, the financial sector reforms outlined in the government’s plan will help create a more stable and predictable environment for businesses, which will be beneficial for both SMEs and the wider Tunisian economy.
In conclusion, the World Bank’s $120 million loan to Tunisia is a positive step towards supporting SMEs in the country and helping to mitigate the challenges they have faced due to the pandemic and conflict in Ukraine. The loan will help provide the financial assistance SMEs need to survive and thrive, while the financial sector reforms will help create a more supportive environment for businesses in the country.