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The European Union granted 100 million euros to Tunisia, to overcome the political and financial crisis the north African country is facing. The support will be channelized for the distribution of social aid to needy citizens and businesses.
The European Union granted 100 million euros to Tunisia, to overcome the political and financial crisis the north African country is facing. The support will be channelized for the distribution of social aid to needy citizens and businesses.
The first tranche of immediate disbursement of 40 million euros is granted to Tunisia under this program signed by the EU Ambassador to Tunisia, Marcus Cornaro, and the Tunisian Minister of Economy and Planning. The rest of the disbursement will be made as and when the implementation of the program picks up. Tunisia has been considerably affected by the combined impact of the pandemic of COVID-19, and the Russia-Ukraine war, which has resulted in a severe food crisis.
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This package to Tunisia is a part of the agreement by Tunisia with the International Monetary Fund (IMF). Since 2011, the country has been facing an economic downturn, which was further aggravated by the pandemic and the ongoing Russian-Ukraine conflict. The country has a massive debt burden, exceeding 100% of GDP. In mid-October, Tunisia entered into an agreement in principle with the IMF for a new loan of US $ 2 billion to be disbursed in installments starting in December. As a condition to avail of the loan, the country has agreed to a gradual lifting of state subsidies for basic products (food and energy) and a restructuring of state-owned companies that have a monopoly in many sectors.
