Loan agreement signed at Lima meeting
- Arab Fund for Economic & Social Development has signed a KD50m ($166m) loan to Tunisia
- The funds will cover the reinforcement of classified and rural roads
The Kuwait-based Arab Fund for Economic & Social Development (AFESD) has signed a KD50m ($166m) loan for Tunisia at the World Bank IMF annual meeting in Lima, Peru.
The loan, for the Ministry of Development, Investment & International Cooperation, will reinforce classified and rural road networks, according to Agence Tunis Afrique Presse.
It follows a $200m loan by the US-based World Bank to upgrade 146km of rural roads extended in July.
About 80 per cent of goods are moved by road in Tunisia, but highway building has prioritised coastal regions.
AFESD also extended Tunisia a TD190m ($98m) loan for a motorway in 2011, and TD285m in 2012 for regional development programmes and bank recapitalisation. Both loans were repayable in 22 years, including five years grace, with a 3 per cent interest rate.
Tunisia is hoping to rely on development bank support for much-needed infrastructure investments and reforms. It is focusing on job creation, regional development and creating a better environment for business.