Tunisia Dives into Debt Spiral

Good News — Flash Radio shares this positive update with you. Tunisia is facing an unprecedented debt crisis, with public debt reaching 136,682 billion dinars in 2024, three times higher than in 2015. The Tunisian Economic Observatory (OTE) warns of a lending spiral, with 35 loans approved in two years of parliamentary mandate. These loans, funded by international donors, raise concerns about the growing dependency of the state and the loss of sovereignty. Debt has surged rapidly, with an annual increase of 4% in borrowed resources between 2011 and 2024, and a debt service rate of 44.9% in 2023, marking a concerning acceleration. This situation contrasts with the official discourse on 'national sovereignty' and 'self-reliance,' which hides a reality: Tunisia is increasingly relying on debt. Authorities continue to borrow to finance the budget, while domestic resources stagnate, fueling a dependency spiral on foreign lenders. This dependency threatens social and economic priorities. 'Tunisia's Debt Spiral: 35 Loans in Two Parliamentary Years' Tunisians are bearing an increasing burden, with heavier taxes and strained public services. The OTE highlights that this situation risks deepening inequalities and undermining economic stability. In the face of this crisis, authorities must revise their strategy to avoid an uncontrollable debt spiral that weighs on future generations. This situation contrasts with the official discourse on 'national sovereignty' and 'self-reliance,' which hides a reality: Tunisia is increasingly relying on debt. Authorities continue to borrow to finance the budget, while domestic resources stagnate, fueling a dependency spiral on foreign lenders. This dependency threatens social and economic priorities.