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🇹🇳 Tunisia /Economy & Trade

Tunisia's Economy Minister Defends Borrowing, Cites Falling Debt Ratio

From La Presse · (1d ago) French

Translated from French, summarized and contextualized by DistantNews.

TLDR

  • Tunisia's Economy Minister Samir Abdelhafidh refuted claims that the parliament is a "loan parliament."
  • Official data shows a decrease in the external debt to GDP ratio, from 66.8% in 2020 to 39.1% in 2025.
  • The minister stated that loans are primarily for investment in infrastructure and economic activity, aiming to boost growth and eventually enable Tunisia to become a lender.

In Tunisia, the discourse surrounding national debt and foreign borrowing often ignites passionate debate. The recent session in parliament, where Minister of Economy and Planning Samir Abdelhafidh addressed the Assembly of Representatives of the People, was no exception. Critics have labeled the legislative body the "loan parliament," a moniker that carries significant weight in a nation striving for economic stability and sovereignty.

The external debt reported to GDP has decreased from 66.8% in 2020 to 39.1% in 2025.

— Samir AbdelhafidhDuring a plenary session, the Economy Minister cited official indicators to counter criticism of parliamentary borrowing.

Minister Abdelhafidh's defense, backed by Central Bank data, aimed to assuage these concerns. He presented figures showing a substantial reduction in the external debt-to-GDP ratio, a key indicator of a nation's financial health. The projected decrease from 66.8% in 2020 to 39.1% by 2025, if realized, would be a significant achievement, signaling a potential shift in Tunisia's economic trajectory.

However, the narrative presented by the minister goes beyond mere statistics. He emphasized that the borrowed funds are not for consumption but are strategic investments. The focus on modernizing infrastructure and supporting economic activity highlights a long-term vision. The ultimate aspiration, as articulated by Abdelhafidh, is for Tunisia to transition from a borrowing nation to one capable of extending financing in the future. This ambition, while laudable, will require sustained economic growth and prudent financial management.

The loans contracted by the state are mainly intended for investment, particularly in modernizing infrastructure and supporting economic activity.

— Samir AbdelhafidhThe minister explained the purpose of state borrowing during a parliamentary session.

This particular loan, earmarked for the renovation of railway lines crucial for phosphate transport, underscores the practical application of these borrowings. It's a tangible project that directly impacts a key sector of the Tunisian economy. While international observers might focus on the debt figures, for Tunisians, the conversation is also about national development, self-sufficiency, and the responsible use of resources to build a more prosperous future.

We hope that Tunisia will evolve, thanks to these investments, from a borrowing country to one capable of granting financing in the future.

— Samir AbdelhafidhThe minister expressed his long-term vision for Tunisia's economic standing.
DistantNews Editorial

Originally published by La Presse in French. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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