Tunisia's 2027 finance plan unveiled

The Tunisian government has released a draft finance law for 2027, outlining plans to boost external financing while focusing on the domestic market to meet state needs. This comes as the country faces a high budget deficit and large debt repayment obligations that are straining public finances.

Borrowing plans for 2027

The government plans to borrow 26.722 billion Tunisian dinars (TND), about 8.9 billion U.S. dollars, to cover its financing needs in 2027. This represents a 3.3 percent increase compared to the 25.864 billion TND expected in 2026. Domestic borrowing will make up the majority of these funds.

Domestic borrowing mechanisms

The domestic market is expected to account for 74.3 percent of the planned loans, or 19.845 billion TND. This will be achieved through instruments like 52-week Treasury bills, convertible Treasury bills (BTA), and financing from the Central Bank of Tunisia. These mechanisms aim to stabilize the domestic financial system while meeting budget needs.

Increase in external borrowing

External borrowing is expected to reach 6.877 billion TND in 2027, up from 4.269 billion TND in 2026, a 61.1 percent increase. This includes loans for public projects, resold loans, and budget support. International market and private subscriptions are expected to contribute 2.589 billion TND, up from 1.375 billion TND in 2026.

2027 budget deficit and debt

The 2027 budget plans for 68.895 billion TND in expenditures and 54.280 billion TND in revenues, leading to a projected deficit of 14.615 billion TND. Debt repayments are expected to reach 13.307 billion TND, or 24.5 percent of planned budget revenues. Public debt is expected to rise to 83.4 percent of GDP in 2026.

Credit ratings and outlook

Fitch Ratings expects Tunisia's debt-to-GDP ratio to be close to 85 percent in 2026. The agency has maintained the country's sovereign rating at "B-", with a stable outlook, indicating high credit risk. This reflects the ongoing challenges in managing public finances and debt sustainability.