The Assembly of People's Representatives (ARP) on Friday morning kicked off work in a plenary session to consider the bill approving the funding agreement signed on May 16, 2022 between the Republic of Tunisia and a group of local banks to finance the State budget by raising an estimated TND 400 million in foreign currency.

The plenary session, chaired by ARP Speaker Ibrahim Bouderbala, was attended by Finance Minister Sihem Boughdiri Namssia.

Under this agreement with twelve local banks, three of which are Islamic, Tunisia will raise almost TND 400 million, divided between USD 7 million (equivalent to TND 21 million) and EUR 114 million (equivalent to TND 384 million).

The loan will be repaid in 2027 in a single instalment, after a four-year grace period.

The fixed interest rate on this loan is 5% in euros and 5.75% in dollars.

This financing is part of the government's efforts to diversify its budget financing sources, including the foreign currency assets held by non-residents in banks.

It will thus help preserve the stability of foreign currency reserves and relieve pressure on the local money market, which is suffering from a lack of liquidity.

Source: Agence Tunis Afrique Presse