Tunisia Seeks to Convert External Debt into Investment Projects
Source: Presidency of the Government
The issue of public debt is no longer just a financial challenge for the Tunisian government, but has become a potential development lever. In this context, a restricted ministerial council was held on Tuesday, under the presidency of Head of Government, Sarra Zaafrani Zenzri, to examine a program aimed at converting part of Tunisia's external debt into high-yield investment projects.
A Double Challenge
Behind this approach, the executive seeks to address a dual challenge: reducing the burden of debt while financing projects that can improve the living conditions of citizens, particularly in rural areas.
Mechanism of Debt Conversion
The debt conversion mechanism involves transforming claims owed to partner countries into direct investments on Tunisian territory. According to a statement, instead of repaying the debt in the form of financial payments, it is redirected towards development projects deemed a priority by the State.
Key Benefits
The Head of Government considers this mechanism to be one of the most important tools in the context of bilateral cooperation. It not only alleviates the burden of debt servicing but also introduces more flexibility into procedures compared to traditional financing mechanisms.
Projects Chosen According to National Priorities
The government emphasizes a central point: Tunisia will remain in control of project selection. These projects will be defined based on national priorities and the orientations set by the President of the Republic, Kaïs Saïed. The stated objective is to guarantee the sovereignty of the State in development planning and avoid any imposition of external projects that do not meet the country's real needs.
Transforming a Constraint into an Innovative Financial Tool
For the government, this approach allows for the transformation of a debt constraint into an innovative financial tool with a dual impact. On the one hand, it reduces budgetary pressure related to repayment, and on the other hand, it offers targeted financing to support a dynamic of equitable and inclusive development, affecting all regions.
Climate, Employment, and Strategic Sectors at the Heart of Priorities
Among the experiences already undertaken, the Head of Government recalled Tunisia's adherence to an initiative by the United Nations Economic and Social Commission for Western Asia (ESCWA), focused on the implementation of projects adapted to climate challenges. This orientation illustrates the willingness to integrate environmental issues into development policies.
Projects to be Proposed to International Partners
During the meeting, the Minister of Economy and Planning, Samir Abdelhafidh, presented a series of projects that Tunisia intends to propose to its international partners in the context of bilateral discussions. These projects cover several strategic sectors, including employment, health, agriculture, infrastructure, technology, transport, sanitation, and renewable energy.
Ambition to Reinforce Social and Economic Integration
The ambition here is to strengthen social and economic integration, support agricultural production, and consolidate food security, while creating sustainable employment opportunities.
Orientation Confirmed for the Coming Months
At the end of the meeting, the ministerial council recommended continuing consultations with international partners to concretize these projects within the framework of the debt conversion mechanism. The government is counting on this approach to stimulate economic growth, encourage investment, create jobs, and progress towards greater social justice.
Redefining External Debt Management
Through this program, the government intends to redefine the management of external debt, no longer as a brake on development, but as an instrument in the service of more balanced and inclusive development, in line with the expectations of Tunisians.
