Summary:

On 7 April 2025, Parliament voted on a loan project agreed upon in June 2024 between the Tunisian government and the French Development Agency (AFD) that was intended to establish a funding line to support small and medium-sized enterprises (SMEs). 

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The €80 million loan was rejected as the government failed to secure the required majority among parliamentarians, with 48 voting in favor, 31 opposing and 18 abstaining. 

Parliamentarians justified the no vote by citing the absence of an audit system to monitor the deployment of accredited funds. They also criticized the absence of a clear debt strategy.  

Some argued that they rejected the loan project as the funding line was to be directed by banks and leasing actors who they suppose will favor developed business rather than SMEs. 

Outlook: 

The loan’s rejection is likely a response to critics claiming that Parliament does not act as an effective balance to the executive branch but rather operates in close coordination. Parliament has approved 28 loans since its re-establishment in March 2023.  

It is probable that the loan’s rejection will impact relations between the executive and legislature especially because the loan was presented to Parliament by the President. 

As the administration is seeking foreign funding to cover development projects and hard currency shortfalls, the loan’s refusal is likely to put pressure on the executive to discuss implementing the control measures required by the MPs.  

Disagreements on loan projects are also likely to impact discussions with potential creditors who will hesitate to give loans to Tunisia out of the fear that funds will be refused by Parliament or be pushed through without evaluation measures. 

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