São Paulo – The International Monetary Fund (IMF) has announced that the Board of Governors has approved a US$ 506.7 million loan to Tunisia. The decision was made this Wednesday (29), after the entity finished reviewing for a second time the country’s economic results, according to an agreement made in June last year.
In effect, the loan will be granted after the country forms a new government this month, and the Tunisian parliament approves a new constitution, indications that the country is seeking political stability.
Politicians have spent good part of the second semester in 2013 negotiating the formation of a government of technocrats to lead the country until the next elections, in an attempt to reduce the instability that has taken over since the fall of the Zine El Abdine Ben Ali regime, in January 2011, in the beginning of the Arab Spring.
In the first elections held after the removal of the former president, who held office for more than 20 years, the Islamist party Ehnnada won and appointed the prime minister. There was, however, polarization in the country and the political dispute became violent.
The murder of two opposition leaders in the first semester in 2013 led to, first, a prime minister change, and second, to negotiations for the formation of a caretaker government.
The agreement with the IMF foresees the establishment of a two-year program supporting economic reforms. The sum approved this time raises loans to a total of US$ 658.8 million. The total loan to be dispersed over a period of 24 months is of US$ 1.76 billion, equivalent to 400% of Tunisia’s quota in the Fund.
Emirates
This Thursday (30), the IMF also disclosed information about a mission held these days to evaluate the economic situation of the United Arab Emirates. The head of the delegation, Harald Finger, declared in a statement that economic growth in the country is expected to remain strong, after the UAE’s Gross Domestic Product (GDP) increased an estimated 4.5% last year, driven by the tourism, hotel and real estate sectors. The forecasted growth for this year is also 4.5%.
*Translated by Silvia Lindsey
