VIII. Trade and Project Financing The Tunisian banking system is open and relatively modern. It is composed of 12 commercial banks, 8 development banks, 1 savings bank, 5 portfolio management institutions, 3 leasing companies, and 7 off-shore banks. The banks are regulated by the Central Bank of Tunisia. Tunisian banks tend to be very conservative in their lending practices. Most lending is focused on larger, established companies. Many foreign exchange controls have been lifted. The Tunisian dinar is now convertible for current account transactions and there is free repatriation of dividends and capital. Most transactions occur with little problem on a letter of credit basis. Eximbank is active in Tunisia, with lending focused primarily on U.S. exports to state enterprises. Exim has been very aggressive in its efforts to match concessional financing. Companies competing for government tenders are advised to work closely with the Embassy and Exim once evidence of concessional financing becomes clear. The World Bank (IBRD) and African Development Bank (AFDB) support a variety of projects in Tunisia: 1. The International Bank for Reconstruction and Development (IBRD), a member of the World Bank group makes long-term loans at market- related rates primarily to developing nations. The International Development Agency (IDA), the soft loan window of the World Bank, lends to the poorest of the development countries. Both the IBRD and IDA work to promote broadly based economic growth and frequently focuses on structural adjustment, sectoral reform and individual project lending and operate under the same set of procurement guidelines. Typically the World Bank does not finance the entire cost of a project. Rather, it finances the components of a project purchased with foreign exchange, which on average is about 40 per cent of the total project cost. Each project may cover a wide variety of sectors and can involve anywhere from one to hundreds of separate contracts providing export business opportunities for suppliers worldwide. IBRD efforts are focused on a variety of areas including the environment, solar power, reforestation, dams and irrigation, and rural roads. CONTACTS: U.S. Department of Commerce Liaison to the U.S. Executive Directors Office International Bank for Reconstruction and Development 1818 H. St., NW Washington D.C. 20433 Tele: (202) 458-0118 Fax: (202) 477-2967 Office of Multilateral Development Banks U.S. Foreign Commercial Service U.S. Department of Commerce Room H-1107 Washington D.C. 20230 Tele: (202) 482-3399 Fax: (202) 273-0927 2. The African Development Bank (AFDB), headquartered in Abidjan, Cote d'Ivoire, is an international financial institution created by Africans in 1963 to promote the economic and social development of its member African countries. Founded with initial capital resources of USD 250 million, it has authorized capital today of over USD 22.3 billion. The bank belongs to the African Development Bank Group (ADBG) which also includes the African Development Fund (ADF) and the Nigerian Trust Fund (NTF). The AFDB makes loans to development projects in 51 countries in Africa. The ADB provides development financing on concessionary terms to the poorer African member countries. The NTF was established by the Government of Nigeria in 1976 to assist in the development efforts of the poorer ADB members. The ADFB has 21 non-regional members. The United States joined in 1982. AFDB assistance includes two major dam projects CONTACTS: U.S. Department of Commerce Liaison Office to the U.S. Executive Directors Office African Development Bank Ave. Joseph Anoma 01 B.P. 1387 Abidjan 01, Cote D'Ivoire Tele: (225) 21-46-16 Fax: (225) 22-24-37 Office of Multilateral Development Banks U.S. & Foreign Commercial Service U.S. Department of Commerce Room H-1107 Washington, D.C. 20230 Tele: (202) 482-3399 Fax: (202) 273-0927 Commercial Banks: Citibank, the only American bank operating in Tunisia, has both on-shore and off-shore branches, with offices in both Sfax and Tunis. Most Tunisian banks maintain a corresponding relationship with one or more U.S. banks.