Portuguese / Spanish / English

Middle East Near You

Germany issues $119m loan to support Tunisia banks

Image of Tunisian dinars [Rusty Clark/Flickr]
Tunisian dinars [Rusty Clark/Flickr]

Tunisia and Germany yesterday signed a €100 million ($119 million) loan agreement to support budgets and reforms in the financial and banking sectors.

According to a statement distributed to the press, under the agreement Germany will grant Tunisia the loan on a concessionary basis with an interest rate that does not exceed 2.3 per cent, and a repayment period of 15 years, with a five-year grace period.

The loan agreement includes a €10 million ($11.9 million) grant which will be signed later to help implement agreed reforms.

The loan is in line with German pledges to grant Tunisia a low-interest loan to encourage financial and banking reforms worth €300 million ($357 million) over three years.

In a statement, the Tunisian Minister of Development, Investment and International Cooperation, Ziyad Al-Athari, said that “external financing is inevitable”.

The World Bank and Tunisia signed a $630 million agreement yesterday which includes $500 million to support the government budget and $130 million to support programmes for urban development and local governance.

The estimated budget deficit in Tunisia for this year is 4.9 per cent of GDP.

Europe’s migrant crisis is the coloniser’s karma

AfricaEurope & RussiaGermanyInternational OrganisationsNewsTunisiaWorld Bank
Show Comments
Show Comments