Maghreb Edition

Tunisia: Saudi Arabia offers soft loan and grant to financially-troubled TunisiaF

Posted On 20 July 2023

Number of times this article was read : 4200

Saudi Arabia on Thursday said it will give Tunisia financial assistance valued at $500 million, including a $100 million grant, as the North African country grapples with crippling inflation and debt. The announcement carried by the official Saudi Press Agency followed a visit by Tunisia’s Foreign Minister Nabil Ammar as part of a Gulf tour this week aimed at drumming up financial support. Ammar also made stops in Kuwait and the United Arab Emirates.

“The Kingdom offers a soft loan and grant to the Republic of Tunisia in the amount of $500 million,” SPA said, without providing additional details.  The financial assistance consists of a $400 million soft loan and a $100 million grant, Saudi Arabia’s ambassador to Tunis, Abdel Aziz al-Saqer, told Saudi-owned Al Arabiya television on Thursday.

Tunisia is struggling under crippling inflation and debt estimated at around 80 percent of its gross domestic product. Last October, the North African country reached an agreement in principle with the International Monetary Fund for nearly $2 billion, but discussions have since stalled. President Kais Saied, who assumed near total governing powers since July 2021, has repeatedly rejected what he calls the “diktats” of the IMF before a loan is granted.

On Sunday, Saied reiterated his rejection of IMF demands to lift subsidies on basic products and services, namely oil and electricity, as well as the restructuring of 100 state-owned firms.

AFP

Subscribe to Urgent Notifications and Newsletter

Most Recent Stories from the Region

Gulf War Escalates as Energy Markets Reel and Regional Fronts Multiply$

The war involving Iran, Israel, and the United States is expanding across the Middle East, with growing consequences for global energy markets and regional security. Disruptions in the Strait of Hormuz and attacks on Gulf energy infrastructure have pushed oil prices higher and raised concerns about supply stability. As missile exchanges intensify and fighting spreads to Lebanon, world leaders are scrambling to assess the economic fallout and prevent further escalation.

West Africa: Jihadist Attacks Intensify in Northern Benin Amid Cross-Border Insurgency Pressure$

Jihadist attacks in northern Benin have intensified in recent weeks, with militants linked to JNIM claiming a deadly assault on a military position near the Niger border and carrying out additional raids on security posts along the country’s volatile frontiers with Burkina Faso and Nigeria. The violence underscores how northern Benin has become part of a wider cross-border insurgency spilling south from the central Sahel, even as authorities bolster Operation Mirador and try to prevent armed groups from entrenching themselves on Beninese soil.

Desert Locusts Stir Fresh Worries in North-West Africa$

Small desert locust swarms recently detected along the western Sahara corridor have prompted stepped-up monitoring across parts of North and West Africa, where shifting rainfall can quickly turn quiet desert areas into launchpads for wider infestations.

Written by The North Africa Journal

The North Africa Journal is a leading English-language publication focused on North Africa. The Journal covers primarily the Maghreb region and expands its general coverage to the Sahel, Egypt, and beyond, when events in those regions affect the broader North Africa geography. The Journal does not have any affiliation with any institution and has been independent since its founding in 1996. Our position is to always bring our best analysis of events affecting the region, and remain as neutral as humanly possible. Our coverage is not limited to one single topic, but ranges from economic and political affairs, to security, defense, social and environmental issues. We rely on our full staff analysts and editors to bring you best-in-class analysis. We also work with sister company MEA Risk LLC, to leverage the presence on the ground of a solid network of contributors and experts. Information on MEA Risk can be found at www.MEA-Risk.com.