According to the latest report on preliminary results of the state budget execution, recently published by the Ministry of Finance, Tunisia’s public debt stood at 135.1 billion dinars at the end of March 2025. This marks a 7.2% increase compared to the same period in 2024.
At this pace, Tunisia is expected to close the 2025 fiscal year with a total debt of 147.4 billion dinars, representing 80.5% of the country’s gross domestic product (GDP), as projected in the current Finance Law.
Domestic vs. External Debt Breakdown
An analysis of the debt structure reveals that 57% of the total—equivalent to 77 billion dinars—is domestic debt, while the remaining 43%, or 58.1 billion dinars, is sourced from external financing.
The bulk of this external debt originates from multilateral cooperation agreements, accounting for 68.6%. Loans secured on international financial markets represent 8.2%, while bilateral loans make up 23.2%.
In terms of currency composition, the euro remains dominant, comprising 60.2% of external borrowings, followed by the US dollar (26.2%) and the Japanese yen (6.5%).
Sharp Rise in Debt Servicing Costs
Debt servicing costs have risen sharply, reaching 9 billion dinars by the end of March 2025—a 26% year-on-year increase compared to 7.2 billion dinars in the same period in 2024.
This figure includes over 7.4 billion dinars allocated to principal repayments, a surge of 38.6%. Conversely, interest payments declined by 10.4%, amounting to 1.6 billion dinars.
A Warning Sign for Public Finances
These figures underscore the mounting pressure that public debt is placing on Tunisia’s public finances, amid sluggish economic growth and limited access to external funding.
As debt maturities grow heavier and fiscal space narrows, Tunisian authorities will need to adopt a strategy of fiscal discipline and innovation to rein in this trajectory.
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