National SME fund adopts new strategy to recover debts from troubled projects

In a notable move to address troubled projects the National Fund for Small and Medium Enterprise Development has begun collecting debts from more than 60 struggling projects.

According to reliable sources the fund is considering a conciliatory approach with entrepreneurs, prioritizing amicable settlements over immediate legal action. This strategy is part of a broader plan to address accumulated debts, which exceed 10 million dinars, by opening direct communication channels with entrepreneurs who have demonstrated good faith in cooperating with the fund, reports Al-Jarida daily.

The approach will give priority to projects affected by force majeure events beyond the control of their owners, which led to the failure of these businesses.

While some projects have been referred to relevant authorities to initiate formal procedures, the fund aims to provide flexible solutions for those in default. Options may include rescheduling debts on favorable terms and introducing mechanisms to facilitate repayment.

The program is designed not only to recover outstanding debts but also to reintegrate viable projects into the economic cycle, preserve public funds, and ensure the fund’s long-term sustainability.

Estimates indicate that the initiative could recover approximately 40–50 percent of the current debts during the next fiscal year, while also offering sustainable solutions to support entrepreneurs.

This step underscores the fund’s evolving role as a partner to entrepreneurs, focusing on collaboration and financial rehabilitation rather than merely acting as a financier.

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