Tunisia gov’t approves $54m loan from Italy

Rome: The Tunisian Parliament yesterday approved a draft law to allow the country to obtain a loan from Italy worth €50 million ($54 million) to support the state’s general budget.

Parliament said in a statement: “During today’s session, a draft law was passed regarding the approval of a loan agreement between Tunisia and Italy.”

It added that the loan is worth €50 million and would be delivered in the form of direct support to the state budget, and that “Tunisia will repay the amount over 40 years without interest.”

The loan agreement falls within the framework of implementing a memorandum of understanding reached by the governments of the two countries, on 16 June 2021, regarding cooperation for development, the statement explained.

“These funds will be allocated to support the energy sector in Tunisia,” it added.

Following her meeting with President Kais Saied at the Carthage Palace on 17 April, Italian Prime Minister Giorgia Meloni said: “Energy is one of the areas where cooperation between Italy and Tunisia must continue to be strengthened.”

Meloni’s office stated at the time that Rome would provide Tunisia with government financing and a credit facility with a total value of €105 million ($111.7 million), as part of its efforts to strengthen economic relations with African countries and reduce irregular migration to Europe.

European officials call on Tunisia to exercise more control over its shores and prevent irregular migrants from leaving for Europe, especially Italy.

Rights groups have long warned that deals signed between Italy and African states is border control disguised as aid. They highlighted previous efforts to “use development funding to prevent migration have a poor record; involving funding and cooperation with the so-called Libyan Coast Guard and violent militias that have committed numerous human rights abuses at sea, returning people to horrific conditions in Libya.”