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State will cover 3% of loans granted to SMEs

Published the:  24/12/2019

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(TAP)- Caretaker Prime Minister Youssef Chahed signed, on Tuesday, the government decree on the setting of the conditions and procedures for the assumption by the State of the difference between the interest rate on investment credits and the average money market rate (MMR), up to 3%.

This measure covers investment loans granted by banks and financial institutions to small and medium-sized enterprises (SMEs). It will enable them to benefit from the necessary financing to increase their activities, according to a press release posted on the Prime Ministry’s Facebook page.

This decree is part of the implementation of the provisions of Law No. 2019-47 of June 3, 2019, on improving the investment climate. It targets SMEs operating in the sectors of agriculture, trade, finance, real estate development as well as energy and mining.

The aim is to reduce the financial burden of investment loans taken by SMEs, so as to improve their profitability and encourage banks to finance them.

A steering committee stemming from the Ministry of Industry and SMEs will be tasked with implementing this decree