Tunis, Tunisia - Tunisia's external debt service has seen a significant increase in the first ten months of 2023, rising by 44.4% compared to the same period in the previous year. According to the monetary and financial indicators released on Monday by the Central Bank of Tunisia (BCT), the external debt service exceeded TND 10.1 billion.

According to Agence Tunis Afrique Presse, The BCT report also noted a decline in foreign exchange reserves in recent days, dropping to TND 25.3 billion, which is equivalent to 113 days of imports. However, this level remains higher than the figure recorded a year earlier, which stood at around TND 22.7 billion, or 102 days of imports.

The fall in foreign exchange reserves is attributed partly to Tunisia's recent repayment of a euro-denominated bond loan issued in 2017. This repayment is part of the scheduled loan repayments for the year 2023 and has resulted in a decrease in foreign exchange reserves to 112 days of imports by the end of October 2023.

The BCT highlighted that foreign exchange reserves are primarily sourced from tourism receipts and worker remittances. Tourism receipts have shown a considerable increase, reaching TND 6.3 billion by the end of October 2023, marking a 37.8% increase compared to the previous year. Additionally, cumulative worker remittances have risen by 4%, from TND 6 billion by late October 2022 to TND 6.3 billion in the same period in 2023.

The rise in external debt service and the subsequent impact on foreign exchange reserves underline the economic challenges Tunisia faces, particularly in managing its international obligations amidst fluctuating revenue streams.