Tunisia’s external debt service in 2024 was around 14.3 billion dinars, 22% higher than the previous year, according to the Central Bank of Tunisia (BCT).
This represents a significant 29% of the state’s annual revenues, estimated at 49.2 billion dinars.
As in previous years, the servicing of Tunisia’s external public debt (comprising principal and interest repayments) was a real test of the country’s economic resilience last year.
The country’s ability to meet its financial obligations while maintaining social stability is a delicate balance.
Among the factors that have contributed to the increase in Tunisia’s external debt burden are the continued depreciation of the Tunisian dinar, which automatically increases the cost of repaying debt denominated in foreign currency; unfavorable international economic conditions, in particular the rise in interest rates in the world’s major economies; and weak domestic economic growth, which limits the country’s repayment capacity.
The increase in Tunisia’s public debt service in 2024 illustrates the major challenges facing the country.
Successfully managing this situation will be crucial for the country’s economic future and its ability to return to a sustainable growth path.