Tunisia receives $500m loan guarantee from the US

Jun 08, 2016

This will allow the country to borrow at a rate of two per cent or less.

The United States have just granted a loan guarantee to Tunisia that will allow it to borrow $500 million (€440 million) at reduced rates on
international financial markets.

"The value of this loan is $500 million, its duration is five years and the American guarantee will allow us to borrow at a rate of two per cent or less, instead of six or seven per cent if we were going alone on the market," said Tunisian finance minister Slim Chaker.

A €1 billion eurobond, which was scheduled for April 2016, has thus been postponed to next semester.

"The agreement aims to support Tunisia as it continues major economic reforms that will provide the foundation for growth and prosperity," said the US State Department in a statement.

The funds raised will mainly finance the Tunisian budget deficit. The North African country is struggling after two terrorist attacks hit the tourism industry last year, on top of the lingering effects of the 2011 political crisis.

The World Bank plans to lend Tunisia $5 billion over five years to revive its economy.

The US government had already granted a similar guarantee to Tunisia in June 2014 for a loan of $500 million.ADNFCR-2976-ID-801819839-ADNFCR