Tunisia Repays $1 Billion Eurobond, Impacting Foreign Exchange Reserves
As expected, Tunisia is proceeding with the repayment of its $1 billion eurobond (TUNIS 5.75 01/30/25 reGS) today, the largest foreign debt payment the country will make in 2025. This repayment has had a direct impact on the country's net foreign exchange reserves, which have lost 15 days of import coverage. The reserves now stand at 23,325 MTND, equivalent to 104 days of import coverage. The country has paid out over 3,376.4 MTND in a single day.
At this level, the economy can function, but professionals know that when net foreign exchange reserves hover around 100 days, import delays for non-essential products or those not related to industrial activities are extended.
However, the reserves will gradually rebuild, thanks to accelerating tourism revenues and remittances from Tunisian workers abroad. Tourism revenues have already reached 357.6 MTND, while remittances from the diaspora have reached 435.8 MTND, both showing improvement compared to 2024.
The impact on the sovereign debt balance will also be visible. The gap between internal and external debt will widen further. Although exact calculations are not available, external debt is expected to be around 59,000 MTND, its lowest level in years. In absolute terms, this is good news. However, the need for foreign exchange resources is intensifying. It is imperative to provide economic operators, including the state, with the means to conduct transactions with foreign countries. Avoiding debt for current expenditures is understood, but it is essential to open the door to financing for projects that create value and, above all, employment.
