São Paulo – This Friday (7th), the International Monetary Fund (IMF) that its board of directors has approved the loan made in April with Tunisia. The 24-month agreement concerns a US$ 1.74 billion loan to the Arab country. As a result of the approval, a US$ 150.2 million instalment will be available for immediate withdrawal. The loan will fund Tunisia’s 2013-2015 economic reform program, whose goals include strengthening fiscal policies and reducing external vulnerability.
The amount is equivalent to 400% of Tunisia’s quota with the IMF. Other instalments will be phased in during the implementation of the program, subject to eight program reviews by the Fund.
“Tunisia has embarked on a moderate economic recovery while facing a challenging international economic environment and pursuing a political transition,” said the IMF deputy managing director and acting chair Nemat Shafik, according to a press release. “A fragile banking sector, pressing social demands, widespread regional disparities, and high unemployment are key challenges, together with widening external and fiscal deficits,” she added.
To Shafik, the Tunisian government plan and the deal with the Fund will help boost investor confidence in the country’s economy. “With full implementation of the program, Tunisia will be in a better position to respond to future shocks and meet the pressing needs of its population,” she said.
Tunisia was the country that triggered the Arab Spring, as a popular uprising led to the ousting of then-president Zine El Abdine Ben Ali, who had remained in power for over two decades. The protests brought to light long-repressed social, economic and political demands.
One of the measures set forth in Tunisia’s economic plan is the launch of a new Investment Code, aimed at attracting the interest of local and international investors. The new legislation will be discussed with economic operators at a forum due in Tunis on the 13th and 14th this month, organized by Tunisia’s Foreign Investment Promotion Agency (Fipa). For further information on the event, which is open to foreign participants, go to www.tunisiainvestmentforum.tn.
*Translated by Gabriel Pomerancblum
