Tunisia seeks $2.2bn from central bank to repay debts

Tunisia’s central bank will provide $2.2 billion to the government to help repay debts next year, according to news reports.

The funding follows the parliamentary approval of a budget law amendment that allows the government to borrow directly from the central bank.

This marks the second instance within a year of the government tapping the central bank for funds.

The 2025 budget forecasts domestic borrowing to rise to $7 billion from $3.5 billion in 2024, while external loans fall to $1.98 billion from $5.32 billion, Reuters reported.

Addressing the parliament, finance minister Sihem Boughdiri said the measure was necessary to address ongoing financial challenges, including reduced tax revenues and the growing burden of public debt servicing.

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The central bank loan carries zero interest, a 15-year repayment term, and an initial three-year moratorium.

Tunisia must pay off debt worth 9 billion dinars ($2.85 billion) in the first quarter of 2025, including 5.1 billion dinars in foreign debt.

Tunisia faces a debt repayment obligation of 9 billion dinars ($2.85 billion) in the first quarter of 2025, including $1.6 billion in foreign debt, the news agency reported.