Tunisian Parliament Rejects €80 Million Loan Agreement with French Development Agency

Tunisian Parliament Rejects €80 Million Loan Agreement with French Development Agency

The Tunisian People's Representatives Assembly rejected, on Monday, April 7, 2025, Bill No. 85/2024 approving a loan agreement signed on June 25, 2024, between Tunisia and the French Development Agency (AFD). The €80 million loan (approximately 270 million dinars) was intended to finance a credit line for small and medium-sized enterprises (SMEs).

Despite government support, the bill failed to secure the required majority: 48 deputies voted in favor, 31 against, and 13 abstained. The lack of quorum led to its rejection, in accordance with constitutional requirements for ordinary laws.

This refusal takes place in a context of controversy surrounding the increasing reliance on external financing. While some see it as an economic stimulus, others warn of the risk of excessive debt and the absence of a long-term financial vision.