Turkey to Extend $500 Million of Credit to Tunisia

Turkey will transfer $500 million of credit to Tunisia of which $100 million will come in the form of a grant.

Tunisian Minister of Development and International Cooperation Riadh Bettaieb, a member of Tunisia’s delegation to the 42nd annual World Economic Forum held in Istanbul, confirmed to TAP that Turkey and Tunisia are trying to build a partnership on several different levels.

During his visit to Tunisia in January, Turkish Economic Minister Zafer Caglayan emphasized that Turkey is prepared to support Tunisia in its transition to democracy and stimulate Tunisia’s agricultural and regional development.

Caglayan’s visit came as part of the Tunisian-Turkish Trade Investment Forum hosted by the Confederation of the Tunisian Citizens Enterprises (CONECT).

CONECT affirmed to Tunisia Live that, “Turkey is very interested in investing in Tunisia, and Africa in general, given the expensive labor costs in Turkey along with other reasons. This constitutes a genuine opportunity for Tunisians, who need to know how to seize this chance appropriately.”

The press attaché of the Ministry of Development and International Cooperation added that procedures are underway to sign the agreement.

Nevertheless, the exact terms of the credit transfer have yet to be negotiated, and the loan will be managed by several banks that have still not been selected, said an official from the Turkish Embassy in Tunis.

This grant is designed to support Tunisia’s national budget, whose fiscal deficit is currently at 6.6%. Some experts believe that this figure can rise in view of the high expenditures that the Constituent Assembly has allocated for its regional development program.