Summary:

On Tuesday, 2 July 2024, the Tunisian Parliament approved a loan agreement between the government and a group of local banks to fund the national budget with 570 million dinars.

Some MPs rejected the loan and questioned how the administration would manage these funds. The Head of the Parliamentary session countered these criticisms saying the Parliament was established only to approve loans agreements, not debate the underlying strategy of such loans.

[mepr-show if=”loggedout”] Please login or purchase an InBrief membership to view the rest of this report [/mepr-show] [mepr-show if=”loggedin”]

The Head of the Parliament provided assurances that good governance is a priority, however, his response did not prevent some MPs from signing a petition to question the government’s actions with regard to the loan.

The new parliament has approved seventeen loans since its establishment in March 2023.

Outlook: 

Numerous internal and external parties continue to express concern over Tunisia’s habitual recourse to foreign and local loans to fund the government.

External analysts and observers as well as a growing number of voices inside Tunisia have raised concerns that a ballooning national debt will risk a significant economic crisis. These same voices are also concerned that the Parliament does not act as an effective balance of the executive branch but rather operates in close coordination.

A large portion of the Tunisian populace is not paying attention to Parliament’s sessions and decisions, while some of those who are monitoring the legislative body view it as illegitimate and under the control of the executive branch.

[/mepr-show]

Explore our services or speak with our team of North Africa-based risk experts.