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Algeria grants Tunisia $200 million in loans

Algeria has agreed to give $200 million in loans and deposits to Tunisia's Central Bank, the Tunisian government announced on Sunday.

The Tunisian prime minister's office issued a brief statement on its official website saying that according to the agreement signed between the two countries, Algeria will deposit $100 million into the bank's foreign reserves, followed by a loan worth $100 million.

The statement indicated that there would also be non-refundable assistance, but did not disclose the amount. However, according to Reuters, Tunisian state television reported on Sunday that Algeria made an additional donation of $50 million as well.

Tunisia's Prime Minister, Mehdi Jomaa ended on Sunday his two-day visit to Algeria, his second since taking office in January 2014.

Algeria's Finance Minister Karim Djoudi announced in April that Algeria's foreign currency reserves amounted to $194 billion, which covers the country's imports for three years.

The International Monetary Fund (IMF) agreed in April to grant Tunisia's struggling economy a $225 million loan after it succeeded in forming a transitional government and adopting a new constitution. This is the third instalment of a loan that totals $1.7 billion.

The IMF disbursed the loan's second instalment, worth $507 million, in February while the first instalment of $150 million was paid when the deal was signed in June 2013.

The United States pledged at the end of April to provide new loan guarantees to Tunisia worth $500 million to further help Tunisia's economic recovery.

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AfricaAlgeriaNewsTunisia
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