Tunisia's economy minister has announced that the International Monetary fund has released half a billion dollars in delayed funding following the formation of the country's new interim government.

Hakim Ben Hammouda told the state news agency that the IMF had agreed late Wednesday to release $507 million dollars that had originally been promised in September.

The IMF granted Tunisia a $1.74 billion loan last year, but had only released $150 million of it, citing political instability and legislative deadlock.

Tunisian politicians have since resolved their differences, passed a landmark democratic constitution through consensus and formed a new technocratic government to guide the country to elections later this year.

Since overthrowing their dictator in 2011, Tunisians have been buffeted by a failing economy and high budget deficits.