The disbursement of the loan was approved Monday by The European Commission, said a EU press release, adding that a total of €500 million will be disbursed in three instalments in 2017 and 2018.
Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said the disbursement to Tunisia evidences the EU’s “strong commitment to support the successful economic recovery of one of our closest neighbors”.
“With a renewed sense of urgency, Tunisia has reaffirmed its dedication to an effective partnership. The EU stands firmly with Tunisia in achieving prosperity for all of its people,” said the commissioner.
The second Macro-Financial Assistance program was proposed following the terrorist attacks of 2015, which contributed to halting Tunisia’s economic recovery. This had a significant impact on the country’s balance of payments position and financing needs.
The second and third instalments of the MFA-II (amounting to €150 million each) will be tied to the implementation of a number of policy conditions targeting fiscal consolidation as well as the improvement of Tunisia’s social assistance schemes and business climate.
The EU’s strategy of assistance to Tunisia also includes budget support programs under the European Neighborhood Instrument (ENI), of which Tunisia is a major recipient among the Southern Neighborhood countries, and substantial loans from the European Investment Bank.