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The European Bank for Reconstruction and Development (EBRD) is providing a US$20mn loan to Compagnie Internationale de Leasing (CIL) lending purposes for local micro, small and medium-sized enterprises (MSMEs) in Tunisia
The EBRD said that the funds will help CIL finance MSMEs, which are the core of the Tunisian economy. It will also provide long-term funding to a leasing company in a country where liquidity has been an issue since 2011.
CIL will use the funds to extend leases to MSMEs for the acquisition of equipment, light commercial vehicles, trucks, trailers and real estate, added EBRD.
The loan is the EBRD’s first investment in the country’s leasing sector.
Marie-Alexandra Veilleux, head of the EBRD office in Tunisia, said, ”MSMEs are the backbone of the Tunisian economy and we are very happy to provide this much-needed long-term funding to CIL to finance and develop smaller enterprises. We see CIL as a strong partner for the EBRD’s first engagement in Tunisia’s leasing sector. The company has over 20 years of experience and is keen to continuously upgrade its standards.”
The loan will be accompanied by a US$276,000 technical cooperation package to support CIL and enhance the company’s risk management, reporting and corporate governance, stated reports.
Mohamed Brigui, chairman of the CIL Board, said, ”We are delighted to be the first leasing company to partner with EBRD to further support MSME’s in Tunisia. Through this loan we will aim to provide financing to a larger number of small businesses across the country.”
Since EBRD began operations in Tunisia in September 2012, the bank has already invested US$172mn across 11 projects in the country, the company said.