Projects
Regions
European Union
Enlargement countries
Turkey
Iceland
Western Balkans
European Free Trade Association
Mediterranean Neighbourhood
FEMIP Overview
Supporting pan-Mediterranean initiatives
Financing & advice
FEMIP Loans
Private equity
Advisory & technical assistance
FEMIP Support Package
Procurement
How to apply
Trust Fund
Technical assistance
Private equity
Global dialogue
Partnerships
Organisation and staff
FEMIP Internship Programme
FAQ - FEMIP
EU Eastern Neighbours
Projects
Cooperation with other institutions and organisations
Financing facilities
Trust fund
Institutional framework
Applying for loans
Organisation and staff
Central Asia
Institutional framework
Cooperation with other institutions and organisations
Financing facilities
Technical assistance and grants
Applying for loans
Organisation and staff
Sub-Saharan Africa, Caribbean and Pacific
Funding and Financial Instruments
Applying for loans
Cooperation with partners
Investment Facility
Other initiatives
Activities
Asia and Latin America
Priorities
SMEs
Innovative options
Loans
Microfinance
EU partners for SMEs & mid-caps
Non-EU partners for SMEs & mid-caps
RDI support
Equity investment
Regional development
Climate Action
Urban & natural environment
Innovation
Skills and Jobs
Trans-European Networks
Transport
Energy
Project Cycle
Applying for a loan
Appraisal
Procurement
Monitoring
Projects to be Financed
Explanatory notes
Breakdown by region
European Union
EFTA countries
Enlargement Countries
Eastern Europe, Southern Caucasus and Russia
Mediterranean countries
Africa, Caribbean, Pacific countries + OCT
South Africa
Asia and Latin & Central America
Breakdown by sector
Projects Financed
Breakdown by region
European Union
EFTA countries
Enlargement Countries
Eastern Europe, Southern Caucasus and Russia
Mediterranean countries
Africa, Caribbean, Pacific countries + OCT
South Africa
Asia and Latin America
Breakdown by sector
Multi-criteria list
Operations Evaluation
Organisation and Programme
Programme
Methodology
Criteria
Rating scale
Process
Reports
Operations
Overview
Publications and reports
Cooperation and Coordination
ECG
European Financial Institutions
European Commission
Contacts

FEMIP: Long-term loan to Enda Inter-Arabe for financing microcredit operations in Tunisia

  •  Release date: 24 June 2006
  •  Reference: 2006-070-EN

The European Investment Bank (EIB) has recently granted, under its Facility for Euro-Mediterranean Investment and Partnership (FEMIP), a long-term loan to Enda Inter-Arabe in Tunisian dinars for the equivalent of EUR 750 000 (TND 1 250 000). This loan will help Enda Inter-Arabe to finance its growth and to expand its microcredit operations in less favoured areas of Tunisia.

The contract was signed today by Mr Philippe de Fontaine Vive, EIB Vice-President responsible for FEMIP, and Ms Essma Ben Hamida, Co-Director of Enda Inter-Arabe, on the sidelines of the Euro-Mediterranean ECOFIN Council and FEMIP Ministerial Committee meetings taking place on 25 and 26 June in Tunis.

This EIB loan could be accompanied by technical assistance financed by the FEMIP Support Fund from the European Commission's MEDA budget. This would enable Enda Inter-Arabe to strengthen its organisational structures with a view to optimising its growth management and integrating sustainably into the local financial sector.

At the signing of the loan, Mr de Fontaine Vive commented, This project is an excellent example of complementarity between the operations of the Commission and the EIB in the microfinance sector. The Commission's grants have enabled Enda to develop into a profitable microfinance institution, while this EIB loan will help it to continue growing by giving local banks, which still participate only very marginally in its financing, a sign of confidence in Enda's prospects and soundness.

The project is consistent with the objectives set for the EIB with regard to risk capital operations in the MEDA region, i.e. development of the private sector and in particular strengthening of the financial sector in that region.

By assisting the financing of microfirms, EIB support contributes to reducing the vulnerability of many Tunisian micro-entrepreneurs and bolstering private enterprise.

Since Enda Inter-Arabe launched its microcredit programme in 1995, it has advanced TND 59 million (EUR 36 million) in 136 000 microcredit operations. The repayment rate on these operations stands at 99.6%. At present, 30 000 micro-entrepreneurs, more than 85% of which are women, have outstanding loans with Enda Inter-Arabe. They are served through 27 branches located in the Republic's main cities spanning 15 governorates.

Enda Inter-Arabe employs more than 180 permanent staff, most of whom have higher education qualifications and originate from the districts where they work.

Of the roughly 60 institutions providing microcredit in the Arab world, Enda Inter-Arabe is one of only about ten that have achieved self-sufficiency, and hence does not depend on grants.

To finance its growth, Enda Inter-Arabe has therefore started to tap the financial markets and has already obtained loans worth TND 3 million (EUR 1.8 million) from two Tunisian banks. Negotiations are also under way with other banks in the country.



 Print
 Pdf
Copyright © European Investment Bank 2014
The European Investment Bank is not responsible for the content of external internet sites.

http://www.eib.org/projects/press/2006/2006-070-pret-long-terme-a-enda-inter-arabe-pour-le-financement-doperations-de-microcredit-en-tunisie.htm