French Development Agency (AFD) Announces Interest Rate Increase for Second Tranche of Loan to Tunisia
The French Development Agency (AFD) has announced an increase in the interest rate for the second tranche of the loan agreement with Tunisia, signed on February 14, 2019, aimed at financing the digital health support program. The interest rate has risen from 1.54% to 2.04%, in accordance with Annex 2 of the loan agreement modification.
Background
This decision follows the extension of the loan withdrawal deadlines. The revision of the conditions was decided in coordination with the Tunisian Ministry of Finance and the Central Bank of Tunisia, based on the market prices used by the AFD to finance its loan operations.
Loan Details
The loan, initially amounting to €27.3 million, was divided into two tranches: the first tranche, already withdrawn for €4.3 million, retains the initial interest rate, while the second tranche, totaling €23 million, is subject to the new interest rate.
Annex 2 Provisions
Annex 2 also provides for an extension of the project deadlines to allow the Ministry of Health to continue implementing the program:
- The maximum withdrawal deadlines are now set at September 30, 2028, instead of June 30, 2024.
- The maximum project execution date has been postponed to December 31, 2029.
- The use of funding can be extended until December 31, 2030.
Reasons for Delay
The delay in implementing the program is linked to a reorganization of the Ministry of Health's priorities, aimed at ensuring that the project's objectives are aligned with digital developments in the health sector, both nationally and internationally, and consistent with the overall digitization project of the Tunisian health system.
Next Steps
The Finance and Budget Committee of the People's Representatives Assembly has begun examining the draft law to approve Annex 2 of the loan agreement modification, thereby securing funding and ensuring the continuity of the electronic health program in Tunisia.
