EU disburses €300 million in Macro-Financial Assistance to support the Tunisian people
May 25, 2022
The European Commission, on behalf of the EU, has disbursed €300 million in Macro-Financial Assistance (MFA) to Tunisia.This is the second and last disbursement under the COVID-19 MFA programme to Tunisia, approved to mitigate the economic fallout of the coronavirus pandemic and enhance macroeconomic stability. The first instalment of €300 million was disbursed in June 2021 after ratification by the Tunisian Parliament of the agreement on Macro-Financial Assistance.
This assistance will allow Tunisia to allocate resources towards mitigating the negative socio-economic consequences of the pandemic on its population, now aggravated by the negative impact that Russia’s aggression against Ukraine is having on food and energy security. In total, €600 million in loans have been disbursed under this emergency support programme over the past year, a tangible demonstration of EU solidarity with the Tunisian people at a time of unprecedented crisis.
These emergency funds are being provided to Tunisia in the form of long-term loans on highly favourable terms. They will contribute to alleviating Tunisia’s balance of payments and budgetary situation, while supporting the implementation of key economic reforms. These include measures adopted to improve the sustainability of public finances and public sector reform, enhance the country’s social protection mechanisms, foster the modernisation and reform of State-owned enterprises, and promote private investment by improving the business climate.