Tunisia: Council approves financial assistance

Council of the EU
  • 24/06/2016
  • 16:15
  • Press release
  • 377/16
  • Economy & finance
24/06/2016
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On 24 June 2016, the Council adopted a decision providing a maximum of €500 million in macro-financial assistance to Tunisia. 

The aim is to support economic stabilisation of the country and a substantive reform agenda, contributing to reducing its external financing gap. The support will be shared with the IMF, which on 20 May 2016 extended the arrangement under its extended fund facility for Tunisia for US$2.9 billion. 

Adoption of the decision follows an agreement with the European Parliament, which approved the text on 8  June 2016. There are no amendments to the Commission's proposal. 

Loans 

The assistance will be available for a period of two and a half years. It will be provided in the form of loans, to be disbursed in three instalments. The loans will have a maximum average maturity of 15 years

Conditionality 

The assistance will be subject to a memorandum of understanding (MOU), to be agreed between the Commission and Tunisia. The MOU will lay down clearly defined economic policy and financial conditions, focusing on structural reforms and sound public finances. 

A precondition for granting macro-financial assistance will be that Tunisia respects effective democratic mechanisms and the rule of law, and guarantees respect for human rights.

The Commission and the European External Action Service will monitor the fulfilment of this pre-condition throughout the life-cycle of the macro-financial assistance.