EU approves €200 million disbursement in macro financial assistance to Tunisia
10-10-2017 06:51:00 | by: Bob Koigi | hits: 3487 | Tags:

The European Commission, on behalf of the EU, has approved the disbursement of a €200 million loan to Tunisia.

This disbursement marks the launch of the second Macro-Financial Assistance (MFA-II) programme to Tunisia. A total of €500 million will be disbursed in three instalments in 2017 and 2018.

Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said:

"The disbursement to Tunisia is proof of our strong commitment to support the successful economic recovery of one of our closest neighbours. With a renewed sense of urgency, Tunisia has reaffirmed its dedication to an effective partnership. The EU stands firmly with Tunisia in achieving prosperity for all of its people."

The second Macro-Financial Assistance programme was proposed following the terrorist attacks of 2015, which contributed to halting Tunisia's economic recovery. This had a significant impact on the country's balance of payments position and financing needs. The programme was agreed by the Council and the European Parliament on 6 July 2016.

The second and third instalments of the MFA-II (amounting to €150 million each) will be tied to the implementation of a number of policy conditions targeting fiscal consolidation as well as the improvement of Tunisia's social assistance schemes and business climate.

The EU's strategy of assistance to Tunisia also includes budget support programmes under the European Neighbourhood Instrument (ENI), of which Tunisia is a major recipient among the Southern Neighbourhood countries, and substantial loans from the European Investment Bank.

www.europa.eu