Libya and Saudi Arabia intend to grant Tunisia a loan of $500 million each to help it overcome the stifling economic crisis in light of the continuing political impasse, according to the French-language website Tunis Numerique.
Tunis Numerique quoted a Tunisian source on Saturday, that the interest rates for the two loans range between 6 and 7%, which is better than the proposed 13%, to finance the economy and the state budget.
Tunisia entered into a serious economic crisis with the onset of the Covid-19 pandemic, affecting many sectors, especially tourism, which is the second largest contributor to the gross domestic product.
The Libyan support comes amid a close rapprochement between the two countries. Last week, the Central Bank of Libya and its Tunisian counterpart signed an agreement to cooperate in common areas, including financial technology. The crisis has worsened further since July 25, after President Kais Saied announced exceptional measures to freeze parliament and dismiss the government.
The International Monetary Fund confirmed that it had received a request for assistance from the new Tunisian government, as it is conducting technical talks to determine the country's economic priorities, a spokesperson for the institution said late Thursday night.