Tunisia repays nearly 74% of external debt service

Tunisia has managed to repay almost 74% of its cumulative external debt service, defying predictions by several parties that the country would not be able to meet its commitments in this regard, according to statistics published by the Central Bank of Tunisia (BCT).

As of September 10, the value of debt repaid reached TND 6,653.1 million, compared to TND 8,945 million projected for this year in the 2023 budget law.

According to BCT statistics, the cost of servicing the external debt was covered by tourism receipts and remittances from Tunisians abroad, totalling TND 10.7 billion, a coverage rate of 161%.

This situation has had a general impact on external sector indicators, with net foreign exchange reserves showing an improvement, to TND 26.4 billion (equivalent to 116 days of imports) at September 15, 2023, from TND 23.7 billion (equivalent to 111 days of imports) at the same date the previous year.

Tunisia’s net external financing has declined significantly, from TND 3,411.9 million at the end of June 2022 to TND 932.8 million at the end of March 2023, according to the latest data published by the Ministry of Finance.

This decrease is mainly attributed to the general decline in foreign loans, reflecting the government’s reliance on own resources. Tax revenues increased by 8.3%, while state budget expenditures grew by no more than 7%, resulting in a surplus of TND 58.8 million at the end of June 2023.

Source: Agence Tunis Afrique Presse