Parliament Rejects an 80 Million Euro Loan from AFD Intended for Tunisian SMEs

On Monday, April 7, 2025, the Houws of People’s Representatives rejected Bill No. 85/2024, which aimed to approve a loan deal between Tunisia and the French Development Agency (AFD). The loan was intended to mobilize 80 million euros to fund a program supporting Tunisia’s small and medium-sized enterprises (SMEs) as part of post-crisis economic recovery efforts.

The bill was refused by 31 votes against, 48 votes in favor, and 13 abstentions, a result insufficient for its adoption despite its economic importance.

The loan agreement, signed on June 25, 2024, had a repayment period of 20 years, with a five-year grace period. The funds were to be used to enhance SMEs’ access to financing, which is considered a key driver of the national economy.

This rejection reflects a division within the parliament concerning the country’s external debt policy and strategy for supporting businesses. While some lawmakers emphasized the need to avoid additional debt, others regretted the missed opportunity to revitalize a struggling entrepreneurial sector.

The decision also raises questions about the future of financing mechanisms for SMEs as Tunisia strives to revive its growth in an ongoing fragile economic context.