Tunisian parliament approves $500 million Afreximbank loan

Tunisia’s parliament has approved a $500 million sovereign loan from the African Export-Import Bank to help finance the 2026 state budget, following government assurances that a significant share of the funds would support investment and development projects.

The bill approving the second amendment to the loan agreement was passed on Wednesday evening by 65 votes to 20, with 11 abstentions. It required at least 54 votes to clear parliament.

The agreement was concluded between the African Export-Import Bank, known as Afreximbank, and the Central Bank of Tunisia, acting in the name and on behalf of the Tunisian state.

Finance Minister Michket Slama Khaldi told lawmakers that the facility was not intended to fund consumption, but formed part of the government’s planned financing under the 2026 budget and Finance Law.

She described it as a sovereign loan negotiated by the central bank governor in his capacity as the state’s representative, with parliamentary approval required under the applicable legal procedures.

Khaldi said public debt management remained a strategic policy subject to oversight, adding that a substantial portion of the financing would be directed towards investment, particularly projects included in Tunisia’s 2026-2030 development plan.

According to the minister, the annual interest rate was reduced during negotiations from an initial level of about 9% to 5.86%. She said the final rate was comparable with those applied to loans obtained by Tunisia in 2022 and 2023.

A report by parliament’s Finance and Budget Committee said the funds would be drawn in two instalments: an initial $427 million, followed by a further $73 million.

Khaldi also said Afreximbank’s requirement for parliamentary approval reinforced the legislature’s role in scrutinising state borrowing. She added that Tunisia had met its financial commitments and repaid debts as they fell due, pointing to recent improvements in the country’s sovereign credit ratings as a positive indicator.

Responding separately to questions from lawmakers, the minister said around 51,000 public-sector positions had been budgeted for 2026 and that the government was committed to filling them after allocating the necessary funds through the Finance Law.

Several ministries, including the finance and social affairs ministries, had begun opening recruitment competitions for the planned appointments, she said.

The parliamentary debate also covered tax reform, customs penalties, measures to combat tax evasion and proposals to reduce the tax burden on individuals and businesses.

Khaldi acknowledged implementation difficulties surrounding Article 55 of the 2026 Finance Law, which provides a once-in-a-lifetime tax concession for resident families purchasing or importing a new or used vehicle.