The German ambassador in Tunisia, Horst-Wolfram Kerll, confirmed today that Tunisia's German-owned debt - totaling €60 million - will be cancelled. This decision followed the German foreign minister's visit to Tunisia on January 8.
Mr. Kerll explained that Germany will convert the Tunisian debt into investment. Consequently, Tunisia is no longer obliged to repay its €60 million debt to Germany, provided that the capital is utilized to launch investment initiatives that will benefit Tunisian economy. Additionally, Kerll announced that it will be at the discretion of the Tunisian government to direct the investment into whichever sector to it sees fit.
The German Foreign Minister was accompanied on his visit to Tunisia by a number of German businessmen exploring investment opportunities in Tunisia - the tour included trips to the underdeveloped inland regions.
German Foreign Minister, Guido Westerwelle, also announced during his visit that Germany will be allocating €32 million of foreign aid to Tunisia. The assistance will be directed toward developing socio-economic and cultural initiatives. In addition, Germany is expected to contribute 25% of the total aid that Tunisia will receive from the European delegation. This aid package is projected to amount to €400 million.