Saudi Arabia announced today, Thursday, that it will provide Tunisia with a soft loan of $400 million and a grant of $100 million to help address its struggling financial situation, with a commitment for additional financial support in the coming weeks.
Saudi Finance Minister Mohammed Al-Jadaan, after a meeting with Tunisian President Kais Saied, said, "We will continue to support Tunisia. There will be meetings in the coming weeks to provide additional support from the Saudi Development Fund and the Gulf development funds."
Al-Jadaan and Tunisian Minister of Finance Sihem Boughediri signed an agreement today in Tunisia for the provision of a soft loan of $400 million and a memorandum of understanding for a grant of $100 million.
Tunisia is seeking to secure funds from Gulf countries after stalled discussions with the International Monetary Fund regarding a $1.9 billion loan, following a preliminary agreement reached by both parties in October.
Tunisia is on the brink of a debt crisis and is facing shortages of essential goods. Most of the debts are domestic, but there are upcoming payments for foreign loans due later this year, and credit rating agencies have indicated that Tunisia may default.
