Contrary to the expectations of many observers, Tunisia has managed to repay nearly 74% of its accumulated external debt, according to data released by the Central Bank of Tunisia last Friday.
The repaid debt value reached TND 6.653 billion by September 10th, out of the total TND 8.945 billion planned for the fiscal year 2023, as per the 2023 Finance Law.
Notably, the central bank data highlighted that tourism revenues and remittances from Tunisians abroad majorly covered the external debt service. The combined income from these sources reached TND 10.7 billion, achieving a coverage rate of 161%.
This positive development has had an overall impact on the foreign sector indicators. The net value of foreign currency assets improved, currently standing at TND 26.4 billion (equivalent to 116 days of supply), compared to TND 23.7 billion (or 111 days of supply) a year ago.
It’s worth noting that the net level of external financing witnessed a significant decline, dropping from TND 3.411 billion at the end of June 2022 to TND 932.8 million in the first half of the current year. This decline mirrors the latest data from the Ministry of Finance, which shows a general downturn in domestic borrowings. It underscores the state’s increased reliance on its resources. Tax revenues rose by 8.3%, while the state budget expenditure growth rate did not exceed 7%. This resulted in a budget surplus nearing TND 58.8 million by the end of last June.
The commendable financial discipline shown by Tunisia in managing its external debts is indicative of a focused approach towards stabilizing its economy and leveraging internal resources for growth.
