Turkey says to lend Tunisia $500 million

Turkey will give Tunisia a loan worth $500 million to help the North African country's economy recover from the effects of a revolution that toppled its leader a year ago, Tunisia's government news agency said on Monday. The loan agreement was signed on the first day of a visit by Turkish Economy Minister Zafer Caglayan. "Turkey is determined to support Tunisia and share in its progress," the official TAP news agency quoted Caglayan as saying. Tunisia electrified the Arab world in January last year when protests ousted autocratic leader Zine Al-Abidine Ben Ali. The revolution inspired the "Arab Spring" upheavals that have since re-shaped the political landscape of the Middle East. Tunisia's economy, though, suffered from the instability following the revolution. The new Islamist-led government is under pressure to raise living standards and cut unemployment. It has been seeking foreign aid. Ankara has been building close diplomatic ties with new leaders in the region swept in by the Arab Spring. Many people in the Arab world view Turkey as a model of how to make the transition from authoritarian rule to democracy