TUNIS, Jan. 30 (Xinhua) -- The Tunisian parliament approved on Tuesday a guarantee contract between the country and the European Investment Bank, with a value of 120 million euros (149 million U.S. dollars).

The contract, concluded last year, covers a credit line that will be repaid over 10 years including three years as a grace period.

This European credit facility will finance very small projects at a rate of 10 percent, small- and medium-sized enterprises at 60 percent and intermediate-sized enterprises at 30 percent, according to the Tunisian Assembly of People's Representatives.

During the debate following the approval of the contract, Tunisian deputies emphasized the imperative of reducing Tunisia's debt ratio, which currently stands at nearly 70 percent of GDP, according to the country's National Institute of Statistics.

The deputies expected the funding to promote exports, create wealth, stimulate production as well as help fight corruption.