World Bank approves $500 million loan for Tunisia

This amount will be released in a single tranche after the approval of the National Constituent Assembly before the end of this year. The repayment schedule will be spread over a period of 18 years with 5 years grace and show preferential rates that vary between 1 and 2%,the daily newspaper  La Presse reported.

The new loan aims to accelerate economic recovery in Tunisia providing quick disbursment of aid intended to promote reforms for sustainable and equitable growth. The reform program focuses on  improving the business environment by eliminating paperwork and bureaucracy and increasing transparency for investors. It also aims to strengthen the stability of the financial sector through strategic audits and prudent regulation. It willalso concentrate on the reform of social services and programs employability of young people and the certification and accreditation of higher education institutions and health personnel. furthermore it aims to improve public access to information and to the preparation of a more transparent budget.

In addition, the representative of the World Bank noted that other amounts of US$100 to 150 million, pending approval will be made available to Tunisia to invest in disadvantaged areas, developing a program  for export and vocational training.

The World Bank together with the African Development Bank andthe European Union provide more than $ 700 million as part of a wider package of loans to support the  democratic transition in Tunisia. With other contributions fromAmerica and Japan the total budgetary support is around 5.5% of GDP, or 20% of the budget.