Public Management

Tunisia repays 2023 debts amid financial strain, faces challenges securing external funding

Tunisia repays 2023 debts amid financial strain, faces challenges securing external funding
Thursday, 25 January 2024 14:31

The government has repaid Tunisia's debts due in 2023, relying on new domestic loans. However, it struggles to secure external financing in the absence of a definitive agreement with the IMF on a $1.9 billion aid program.

Tunisia's debt service is expected to increase by 40% in 2024 compared to 2023, reaching $4 billion amid a drying up of external funding, the Ministry of Finance revealed in a January 22 statement.

According to the paper, Tunisia "successfully repaid all its domestic and external debts in 2023, despite significant pressure on public finances", dispelling doubts about the possibility of default. Indeed, local economists point out that the government has relied heavily on new domestic borrowing to repay debts that matured last year, thus considerably reducing liquidity and limiting bank financing of the economy. The country struggles to mobilize external financing in the absence of a definitive agreement with the International Monetary Fund (IMF) on a $1.9 billion aid program. The North African country had signed a preliminary agreement with the IMF on this aid program in October 2022 before suspending negotiations with the institution.

In April 2023, Tunisian President Kais Saied rejected the IMF's "dictate" that links the disbursement of funds to economic reforms, including ending subsidies on basic goods, reducing the public sector wage bill, and privatizing state-owned enterprises. He argued that such reforms could "lead to further impoverishment" and "trigger bloody riots similar to those sparked in 1984 by the increase in the price of bread."

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
EBRD, EU, GCF, and Canada plan €65 mln ($77 mln) green loan for Crédit du Maroc. Funds to support clean energy, water treatment, and sustainable...
World Bank projects Ivory Coast could achieve 7-8% average annual growth with fiscal mobilization above 15% of GDP. Ivory Coast's tax revenue...
• NSIF denies rumors of interest in buying Chococam, saying it is focused on other projects.• Cadyst Invest, linked to Célestin Tawamba, is rumored to...
• AXA sells 80% of AXA Crédit Morocco to Stellantis’ Fidis arm• Stellantis to offer bundled car sales, financing, and insurance• Move aligns with...
Most Read
01

From Dakar to Nairobi, Kampala to Abidjan, mobile money has become a lifeline for millions of Africa...

Africa's Boundless Future: How a simple mobile phone became a pocket bank for millions
02

Airtel Gabon, Moov sign deal to share telecom infrastructure Agreement aims to cut costs, boo...

Gabon’s Airtel, Moov to Share Towers Under Govt-Brokered Deal
03

• WAEMU posts 0.9% deflation in July, second month in a row• Food, hospitality prices drop; alcohol,...

WAEMU Region Records Second Straight Month of Deflation, at -0.9% in July 
04

Malawi votes in high-stakes presidential election Tuesday Economic crisis, inflation dominate vot...

Malawi’s Election Puts Incumbent Chakwera to the Test on Inflation and Fuel Shortages
05

Vision Invest invests $700m in Arise IIP, Africa’s largest private infrastructure deal in 202...

Saudi Arabia’s 2025 Shopping List Now Includes Industrial Parks in Africa — With a $700 Million Entry Ticket
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.