The Tunisia agricultural finance studywas carried out in response to a request made in December2009 by the Tunisian Ministry of Agriculture (MoA) forsupport for a study on the key constraints in agriculturalfinance. Technical and financial support was specificallyrequested for: (i) a comprehensive diagnostic analysis ofthe current mechanisms and problems of financing of theagricultural sector in Tunisia, including those by financialinstitutions and from budget resources, foreign directinvestment, and insurance; (ii) a comparison of the Tunisianexperience with successful experiences made in othercomparable countries; and (iii) the formulation of concreteproposals. The diagnostic part was also requested to includethe regulations pertaining to agricultural credit, otherconstraints impeding the development of agriculturalfinance, such as costs, profitability, professionalorganizations, extension services, research etc., and tolook at the indebtedness of smallholders. It was alsorequested that the recommendations help to: (i) betterdefine the objectives to be achieved in terms of financingof agriculture; (ii) increase the participation of thefinancial sector in financing agriculture; (iii) helpidentify need for support by different types of farmers;(iv) identify new instruments geared at qualitative andtechnological changes; (v) reduce the indebtedness offarmers; and (vi) help improve the subsidies foragricultural investment. There are two main written outputsof the Tunisia agricultural finance study. The expertsworking on the study have compiled a great deal of detailedbackground information diagnosing the current situation,describing practices in other countries, and providingrecommendations on how to improve the situation in Tunisia.These details are provided in the accompanying fulltechnical report, which should be of interest totechnicians. The present report the main summary reportprovides a summary of the main findings and recommendationsfor policy makers.
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