The Tunisian Economic Observatory (OTE) has recommended a comprehensive strategy for Tunisia, focusing on effective debt restructuring and the adoption of financial policies centered on social and development priorities. According to its latest bulletin, without these “serious” measures, the country will continue to be burdened by the constraints of a global financial system that impacts its stability and the well-being of its citizens.
The OTE highlights that debt servicing is a major pressure, accounting for 32% of the state’s budget in 2024. Although the government plans a reduction of 1.1% in 2025 (which equates to 276 million dinars), the total amount remains high at 24.6 billion dinars.
The report also criticizes the lack of concrete actions towards debt restructuring or cancellation, noting that 20% of Tunisia’s debt is bilateral, providing opportunities for negotiation with some creditors. The G20 Debt Service Suspension Initiative, implemented after the COVID-19 crisis, is mentioned as an example of global effort in this direction.
However, an analysis from the Malcolm H. Kerr Carnegie Middle East Center tempers expectations about the effectiveness of Tunisian debt restructuring, due to the predominance of multilateral creditors who are reluctant to renegotiate.
The OTE calls for proactive and independent management by leveraging foreign exchange reserves and issuing new bonds to overcome the debt crisis while preserving social and economic priorities.
