Mubasher: The Members of European Parliament (MEP) on Wednesday backed the plan that allows the European Union (EU) to loan €500 million ($570 million) to Tunisia to reduce its external debt and support its democratic mechanism.
The plan was agreed on by 561 to 76 members, out of total 751 members, according to the European Parliament’s statement.
The loan is to help Tunisia fight the economic downturn, soaring unemployment, and terrorist attacks that frightened away tourists, and to help more than 1.8 million Libyan refugees resembling 20% of its population.
The EU will give Tunisia the opportunity to repay the loan over two and half years.
With the recently approved loan, total EU aid to Tunisia reaches $2.9 billion through the International Monetary Fund (IMF), as stated by the European Parliament.
"This macro-financial assistance is not a grant, it is only a loan which Tunisia will have to repay, even though its debt continues to rise,” said rapporteur, Marielle de Sarnez, in the debate before the vote. She invited the EU Commission to "start thinking" along the lines of France and Germany which have decided to convert part of Tunisia’s debt into investment in Tunisia.
