(Ecofin Agency) - The Tunisian Parliament validated on 2nd February, a bill approving a €150 million loan ($180 million) provided by Germany through the German Reconstruction Credit Institute (KfW) to support the reforms initiated by the government.
Once available, the funds will be injected in projects aimed at improving the efficiency of the transport, energy and electronic payment services sectors ; developing the governance of public institutions ; improving the performance of public administration and public financial management ; and promoting economic and social inclusion.
Set to last three years, these reforms are part of Tunisia’s economic recovery plan, which involves reorganizing the public sector. When the loan agreement was concluded last year, Joachim Nagel, a member of the KfW Board of Directors, indicated that it is important for the Tunisian Government to implement effective reforms to meet this challenge.
"The current objective is to reduce the burden on the Tunisian national budget in the long term through the reforms. In addition, the investment environment should become more attractive with more efficient administration and tax system reforms. The population will also benefit from better public services,” he said.
Let’s note that the loan has a 15-year maturity, in addition to a 5-year grace period. The interest rate is 0.9% per year.
Moutiou Adjibi Nourou