Tunisia Borrows $400M from Local Banks

Tunisia Borrows $400M from Local Banks
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Tunisia Borrows $400M from Local Banks

Tunisia Borrows $400M from Local Banks

Tunisia's Finance Ministry has signed a syndicated loan of €356 million (usd399.6 million) from a pool of twelve local banks to finance the state budget.

The loan agreement was signed on March 26, 2019, by the minister of finance Ridha Chalghoum and the managers of the 12 banks in the presence of the governor of the central bank of Tunisia, Marouen Abassi.

Two forms of repayment of this loan are planned, according to the choice of banks. The first formula is paying back three equal installments over three years with an interest rate fixed at 2.25%.

The second formula is to repay the credit in one installment, after three years and with an interest rate of 2.5%, the ministry said in a statement.

Chalghoum said the credit is “a form of financing appropriate to the conditions and cost.”

Abassi hoped that the Tunisian economy would achieve the desired growth and hopes for investment, which would promote production and ensure liquidity in foreign exchange and in Tunisian dinar.

In this context, Ezzeddine Saidan, a Tunisian economic and financial expert, said that such an agreement injects the Tunisian economy that is suffering a scarcity in resources with fresh blood. He added that the delay in the sixth payment of the IMF loan makes funding the public finance an urgent matter.

This is the second time the Tunisian government borrows from foreign banks in a three-year period – in 2017, it took a EUR250 million loan to fund the state budget.



Gold Falls on Stronger Dollar after Trump Says He Won't Fire Powell

Jewellery is displayed at the Gold Souk market in Dubai, United Arab Emirates, March 14, 2025. REUTERS/Amr Alfiky/File Photo
Jewellery is displayed at the Gold Souk market in Dubai, United Arab Emirates, March 14, 2025. REUTERS/Amr Alfiky/File Photo
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Gold Falls on Stronger Dollar after Trump Says He Won't Fire Powell

Jewellery is displayed at the Gold Souk market in Dubai, United Arab Emirates, March 14, 2025. REUTERS/Amr Alfiky/File Photo
Jewellery is displayed at the Gold Souk market in Dubai, United Arab Emirates, March 14, 2025. REUTERS/Amr Alfiky/File Photo

Gold prices eased on Thursday, pressured by a firmer US dollar, as investor worries eased temporarily after President Donald Trump said he did not plan to oust Federal Reserve Chair Jerome Powell.

Spot gold was down 0.6% at $3,335.77 per ounce, as of 0958 GMT. US gold futures fell 0.8% to $3,331.30.

The dollar index was up 0.3% against its rivals on Thursday, making greenback-priced bullion more expensive for other currency holders.

This comes after a source told Reuters on Wednesday that Trump was open to the idea of firing Powell, which pushed gold prices as much as 1.6% higher.

However, Trump later said he does not plan to sack Powell but left the door open to the possibility and renewed his criticism of the Fed chief for not lowering interest rates.

"Yesterday, gold prices rose on the back of these rumours, which were unfounded. Since the rumours were quelled, prices have been falling," said Nitesh Shah, commodities strategist at WisdomTree.

Investors are, meanwhile, awaiting US jobless claims and retail sales data on Thursday, along with speeches by several Fed officials that may offer insights into the central bank’s policy outlook.

In tariff-related news, Trump said on Wednesday that the US will probably "live by the letter" on tariffs with Japan and may have a trade deal coming up with India.

"I think if we come out of (the tariff deadline of) August 1 with much better trade deals, then that could be gold price-negative," Shah said.

Analysts noted that gold is currently showing limited reaction to trade uncertainties and is awaiting fresh catalysts. Prices remain range-bound between $3,300 and $3,400.

Elsewhere, spot silver fell 0.4% to $37.77 per ounce. Platinum lost 0.3% to $1,412.78 and palladium eased 0.6% to $1,223.03.