Tunisia to Receive 450 Million Euros in European Loans, Grants

Members of the honor guard stand at attention during a flag-raising in place of Kasba in Tunis, Tunisia, June 26, 2018. REUTERS/Zoubeir Souissi
Members of the honor guard stand at attention during a flag-raising in place of Kasba in Tunis, Tunisia, June 26, 2018. REUTERS/Zoubeir Souissi
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Tunisia to Receive 450 Million Euros in European Loans, Grants

Members of the honor guard stand at attention during a flag-raising in place of Kasba in Tunis, Tunisia, June 26, 2018. REUTERS/Zoubeir Souissi
Members of the honor guard stand at attention during a flag-raising in place of Kasba in Tunis, Tunisia, June 26, 2018. REUTERS/Zoubeir Souissi

The European Investment Bank on Tuesday announced grants and loans worth 450 million euros ($480 million) for crisis-hit Tunisia to support small and medium-sized enterprises and infrastructure projects.

The EIB, the European Union's investment arm, said it was providing "new financial support" to Tunisia, targeting "high-impact projects for the population and the country's economic and social development".

The financing will be formalized during the Tunisia Investment Forum to be held on Wednesday and Thursday in Tunis, the bank said in a statement.

The forum will be attended by the EIB's new vice-president in charge of financing in the Maghreb region, Ioannis Tsakiris, Reuters reported.

The funding "will play a crucial role in the creation of jobs, stimulating innovation and promoting balanced development to benefit all Tunisians", Tsakiris said in the statement.

The financing includes a line of credit worth 170 million euros for micro, small and medium-sized enterprises, "which make up 90 percent of the country's businesses and employ 60 percent of the workforce", according to the bank.

It will also provide 210 million euros to develop the "strategic" route between Tunisia's second city of Sfax on its eastern coast and the remote, underserved Kasserine area in the west.

A loan of 45 million euros will be granted to finance the ELMED electricity linkage project between Tunisia and Italy.

Tunisia has faced mounting financial woes, with debt levels at 80 percent of its GDP and unemployment and poverty on the rise.

The crisis has been compounded by the power grab staged by President Kais Saied since July 2021.

Negotiations with the International Monetary Fund for a $2 billion loan have stalled since then, with Saied rejecting reforms demanded by the body.

The crisis has driven thousands of Tunisians to attempt perilous Mediterranean boat crossings in the hope of finding better lives in Europe.



Gold Extends Gains as Trump Tariffs Fuel Safe Haven Flows

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
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Gold Extends Gains as Trump Tariffs Fuel Safe Haven Flows

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo

Gold prices rose for a second straight session on Tuesday, but traded below the recent all-time highs, as uncertainty around US President Donald Trump's tariff plans continued to fuel economic growth concerns and safe haven flows into bullion.

Spot gold gained 0.6% at $2,913.79 an ounce as of 0714 GMT. It hit a record high of $2,942.70 last week.

US gold futures added 0.9% to $2,925.50.

"Trump's disruptive modus operandi, aggressive rhetoric and tariffs - whether actual or threatened - could unravel global trade and intricate supply chains," said Nikos Tzabouras, senior financial writer at trading platform Tradu, Reuters reported.

"With uncertainty surrounding the global economy and the broader geopolitical landscape in the Trump 2.0 era, gold is set to remain a natural beneficiary of risk-off flows and central bank buying."

Since taking office last month, Trump has swiftly redrawn the global trade battlefield with a series of tariffs, while plans are already in motion for sweeping reciprocal tariffs, aimed squarely at any nation that taxes US products.

"Gold continues to benefit from the uncertainty surrounding the US. government's tariff policy. Central bank buying should also continue to provide support, even if there is no new data on this," Commerzbank analysts said in a note.

The market's focus has now shifted to the US Federal Reserve's January meeting minutes due on Wednesday for clues into the central bank's interest rate trajectory.

"Price gains are also supported by growing expectations that the Fed will cut rates in 2025 - a sentiment that gained further traction among traders after last week's disappointing US retail sales figures," Ricardo Evangelista, senior analyst at brokerage firm ActivTrades, said.

Bullion benefits from geopolitical and economic uncertainties, as well as rising price pressures, but higher interest rates diminish the asset's allure.

Spot silver fell 0.9% to $32.50 an ounce. Platinum jumped 0.9% to $985.20 and palladium climbed 1.6% to $978.00.