Tunisia, AFD sign financing agreements to support country's public policies
22/10/2020 21:32, TUNIS/Tunisia

(TAP) - Financing agreements, including a €350 million financing line to support public policies were signed between the Tunisian government and the French Development Agency (AFD) on Thursday in Kasbah.

The agreements, signed in the presence of Prime Minister Hichem Mechichi and French Minister of Europe and Foreign Affairs Jean-Yves Le Drian concern investment promotion, improvement of drinking water supply and support for public policies, according to a press release issued by the Prime Ministry.

They include a framework agreement on a €350 million (the equivalent of 1,140 million dinars) line of financing in the form of a loan to support public policies.

A first installment of €150 million, earmarked to support reforms and strengthen the resilience of the Tunisian economy, will be disbursed this year.

The second (€150 million) and third installments (€100 million) will be disbursed in 2021 and 2022 respectively.

There is a document setting out the conditions for financing the first installment of the financing line devoted to supporting reforms and strengthening the resilience of the Tunisian economy.

Among the documents signed are also:

- €14-million (about 45 million dinars) loan agreement to finance a programme to improve drinking water supply in Greater Tunis.

- €24 million (about 78 million dinars) loan agreement between AFD and the Water Distribution Utility (SONEDE) to help finance a drinking water supply programme in Greater Tunis.

- Guarantee agreement for the loan granted to SONEDE.

- €1 million (about 3.2 million dinars) grant agreement for SONEDE to finance technical support within the framework of the programme to strengthen drinking water supply in Greater Tunis.

Speaking to reporters on the sidelines of the signing ceremony, the French Minister of Europe and Foreign Affairs stressed the strength of the ties between the two countries.

Minister of Economy, Finance and Investment Support, Ali Kooli said the loans will be granted at advantageous interest rates, underscoring Tunisia's commitment to strengthen the partnership with France, particularly in terms of investment.

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