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Tunisia Repays 74% of Accumulated External Debt: Central Bank Report


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Tunisia Repays 74% of External Debt, According to Central Bank

The Central Bank of Tunisia has announced that the country has successfully repaid approximately 74% of its accumulated external debt. This marks a significant achievement for Tunisia’s financial stability.

Repayment Progress and Finance Law

The amount of debt repaid as of September 10 totals 6,653.1 million dinars, out of a planned total of 8,945 million dinars for the current year according to the 2023 Finance Law. This demonstrates Tunisia’s commitment to managing its debt and meeting its financial obligations.

External Debt Servicing

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Data from the Central Bank reveals that the servicing of external debt has mainly been covered by tourism income and remittances from Tunisians living abroad. The combined amount of these contributions reaches 10.7 billion dinars, resulting in a coverage rate of 161 percent. This highlights the importance of these sectors in supporting the country’s economy and debt management.

Positive Impact on External Sector

Tunisia’s progress in repaying its external debt has had a positive impact on the overall performance of the external sector. The value of net assets in foreign currency has significantly improved, reaching 26.4 billion dinars compared to 23.7 billion dinars just a year ago. This demonstrates Tunisia’s strengthened financial position and stability in the global market.

Decreased External Financing and Increased Reliance on Internal Resources

The latest data from the Ministry of Finance reveals a significant decrease in net external financing from 3411.9 million dinars in January 2022 to 932.8 million dinars in the first half of this year. This decrease aligns with a general trend of reduced domestic borrowings, indicating Tunisia’s increasing reliance on internal resources. The state has witnessed a growth in budget revenues by 8.3% compared to a development rate of 7% for state budget expenditures. As a result, a budget surplus of approximately 58.8 million dinars was recorded at the end of June last year, showcasing the state’s ability to generate sufficient internal resources.

Source: Mosaic FM

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