(Ecofin Agency) - Tunisia’s power utility STEG will benefit from a €300 million loan ($359 million) from the European Bank for Reconstruction and Development (EBRD) to strengthen its energy supply, especially in this pandemic context. No details were given on the loan’s maturity period.
“The financing consists of two facilities. A €100 million emergency facility under the EBRD's infrastructure support program and another €200 million facility for STEG's short- and medium-term commitments," the European Bank explained.
This line of credit is announced as Tunisia's national electricity company pledged in June 2020, after consultation with the country's energy and finance ministries to reduce its spending to regain financial stability by 2025.
STEG will put in place a roadmap which will include the strengthening of its financial management and the improvement of its corporate governance. This measure will help to improve the energy supply to companies and individuals.