The European Commission, on behalf of the European Union (EU), has approved on Wednesday the disbursement of a €150 million-loan (about 472 million dinars) to Tunisia, the EU said in a press release.
This is the third and final disbursement under the second Macro-Financial Assistance (MFA) programme to Tunisia and follows the completion of an important set of policy measures intended to support the country’s economic transition.
Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici said: “This disbursement underlines our sustained commitment to supporting Tunisia and its people. While the country has delivered on key policy commitments these past years, pursuing and deepening economic and structural reforms remains essential to building on Tunisia’s democratic and political achievements, and securing a more prosperous future. We thus stand ready to work closely with Tunisia to help deliver on the reforms necessary to secure investment, jobs and inclusive growth for the benefit of its people, notably its youth.”
The second MFA programme was proposed in 2015 to support Tunisia’s economic recovery. The disbursement of MFA funds is conditional on the implementation of specific policy measures agreed in the Memorandum of Understanding. The MFA programme was designed to assist Tunisia in covering its external financing needs while implementing a wide-ranging and ambitious structural reform agenda, the same source explained.
The European Parliament and the Council adopted the second MFA programme, worth €500 million, in July 2016. With today’s disbursement, the EU has now provided Tunisia with €800 million in MFA funds since 2015.
The disbursement of MFA funds is conditional on the implementation of specific policy measures agreed in a Memorandum of Understanding. The reforms undertaken as part of this MFA reflect the efforts made by Tunisian authorities to implement a set of far-reaching reforms designed to fight corruption, build a more equitable tax system, increase the quality of public administration, and improve the country’s social protection system. The programme has also supported reforms to enhance labour market policies and reduce unemployment, especially among the youth, as well as improve the business climate in Tunisia.
MFA programmes are part of the EU’s wider engagement with neighbouring countries and are intended as an exceptional EU crisis response instrument. They are available to EU neighbouring countries experiencing severe balance-of-payments problems. This instrument includes the respect of human rights and effective democratic mechanisms, including a multi-party parliamentary system and the rule of law, as pre-conditions.