Japan grants Tunisia 335 million euros in low-interest loans

The loans will be repayable over 40 years

TUNIS - Japan plans to provide Tunisia with two loans worth 335 million euros ($465 million) to support the country's "democratisation," Senior Vice Foreign Minister Nabuo Kishi said Tuesday during a visit to Tunis.
One loan will finance construction of an electrical power plant in Rades, south of the capital, while the other will be for a project to prevent flooding by Tunisia's biggest river, the Oued Medjerda, the Japanese embassy said in a statement.
The loans, with an annual interest rate of only 0.6 percent, will be repayable over 40 years, with a 10-year grace period.
Kishi said Japan planned to increase bilateral cooperation to support "all of Tunisia's political, economic and cultural efforts" and hoped to "contribute to the success of democratisation" in the country.
Tunisia's economy has stagnated since the 2011 popular uprising that ousted a decades-old dictatorship, with social unrest and a jihadist-related violence discouraging investment, domestic and foreign, and hampering economic reforms call for by international financial institutions.