The European Investment Bank (EIB) agreed on Friday to lend Tunisia 163 million euros to upgrade its road system, the state news agency said.
It said the money would be spent on new roads and road improvements in the coastal areas of Tunis, Sfax, Monastir and Mahdia as well as the interior town of Kef.
It said the money would be repayable over 25 years at an interest rate to be arranged with each loan taken as part of the credit line from the EIB, the European Union's lending institution.
The North African country of over 10 million is struggling to get back on its feet after a popular uprising ousted ruler of 23 years Zine al-Abidine Ben Ali, and set in motion similar protest movements in other Arab countries.
Unemployment and underdevelopment are seen as particular problems in the south and interior of the country. The uprising began in the impoverished town of Sidi Bouzid on the edge of the Sahara desert in December.
The EU is concerned about illegal immigration from North Africa, which has worsened since the uprisings began.