Economy

Micro-Enterprises: subsidies‘conditions to be defined 

The conditions and subsidies granted to young project leaders have been defined by a new executive decree promulgated  in the latest issue of the Official Gazette (No. 77).

The Executive Decree No. 20-374 which dates back to December 16, 2020, amends and completes the decree of September 6, 2003.

According to the new text, young project leaders have to meet a set of conditions related to age, professional qualifications and capabilities to be granted a subsidy from the National Fund for Youth Employment Support.

In terms of age, young projects holders must be aged between 19 and 40. In terms of qualifications, they must have a professional certificate or detain knowledge and skills recognized by a certificate or any other professional document.

Young project leaders will have also to make a personal contribution to the project that matches the required minimum.

Young project leaders are required not to have benefited from any form of subsidies while launching their former activities. The minimum for private funds is based on the investment amount under a triangular funding, which includes banks or financial institutions at 15 percent of the total amount of the project in case the investment is less or equal to ten million dinars.

Investments launched in special areas and highlands benefit from a personal contribution rate set at 12 percent, while investing in southern regions of the country will lower the rate down to 10 percent.

The aforementioned special areas will be defined by a separate decree to be issued by the Ministry delegate in Charge of Micro-Enterprises along with Interior and Finance Ministries.

Regarding the bilateral funding that excludes the bank financing; the private fund is set at a rate of 50 percent of the total amount of the investment in case the latter is less or equal to 10 million dinars.

The new decree included another amendment allowing, in exceptional cases, young project leaders to benefit from refinancing their stalled enterprises according to the previously mentioned triangular financing formula.

These young people are to cope with the provisions applied to the projects funded within the form of triangular financing; they can also make profit from granted privileges in accordance with the ongoing legislation and the provisions of the decree.

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