Banks grant government consolidated credit of 250 million Euros | Tunisia News Gazette

Banks grant government consolidated credit of 250 million Euros

An agreement was signed Thursday between the Ministry of Finance and 13 local banks, with a view to mobilising financial resources in foreign currency for financing the State budget 2017. The first of its kind in Tunisia, this operation will benefit the State from a consolidated credit worth 250 million Euros, equivalent to 695.8 million dinars (MD), to be repaid over a 3-year period.

Some of these banks chose to repay (in foreign currency) on annual tranches with an interest rate of 2%, while others preferred a refund in the form of a single block with a rate of around 2.25%.

On this occasion, interim Finance Minister Fadhel Abdelkefi expressed his satisfaction at the commitment of the Tunisian banks to support state public finance.

He said that, in addition to this consolidated appropriation, the State would also use the mobilisation of treasury bills and also external debt in order to complete the financing of the 2017 State budget, whose needs are estimated at 8.5 billion dinars.

Abdelkefi stressed that his department is already looking at the design of the 2018 State budget and the modalities of its financing.

For his part, Bashir Trabelsi, Director General of Reserve and Markets Management at the Central Bank of Tunisia (BCT), highlighted this initiative, which will serve as an alternative to the use of financing on the international market.

“This is a way of diversifying the funding resources of the state budget, but above all it saves us extra money in foreign exchange, since the overall cost of the operation on the local market is very competitive and advantageous for the public treasury, in comparison with the similar operations carried out on the international market, whose required interest rate exceeds 4% or even 5%, “he added.

The Director General explained that the aforementioned action, mobilised at an interest rate of 2%, will save at least 15.7 million Euros (43.7 MD) per year.

Source: TAP News Agency

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