Saudi Arabia to Finance Two Projects, Lend Tunisia $500 Million

Tunisian President Beji Caid Essebsi meets with Saudi Arabia's Crown Prince Mohammed bin Salman at the Carthage Palace in Tunis, Tunisia, November 27, 2018. REUTERS/Zoubeir Souissi

Saudi Arabia to Finance Two Projects, Lend Tunisia $500 Million

Saudi Arabia plans to lend Tunisia $500 million at a favorable interest rate and will finance two projects worth $140 million.

According to a source which revealed that this comes in after the visit of Saudi Crown Prince sparked protests in Tunisia.

Tunisia’s President, Beji Caid Essebsi received the Crown Prince and awarded him the republic’s medal, the country’s highest official award. The African country has been struggling economically and is dire need of funding.

An advisor to the President, Nourredine Ben Ticha told state television that “Tunisia will announce in a few days important deals with Saudi, including a loan with low interest rate, agreements on investment and other important details”.

An official and a source close to the discussions between Prince Mohammed and Essebsi, told Reuters that the loan would be worth $500 million.

The two sources also acknowledged that the Saudi Development Fund will finance two projects worth about $140 million, but did not give more details.

Tunisia is currently struggling to cut its budget deficit, stabilize falling foreign currency reserves and manage expectations of international lenders demanding reforms such as trimming the public wage bill.

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