São Paulo – The International Monetary Fund (IMF) said this Wednesday (26th) that it should provide an additional US$ 303.8 million loan to Tunisia before the end of September. The loan comes as part of an agreement signed in 2013 and extended until the end of this year, providing for up to US$ 1.68 billion worth of loans in separate installments. The loans are conditioned on periodical reviews of Tunisia’s economy, and amount to US$ 1.15 billion so far. The next review is scheduled for the end of next month, and the cash will be made available following its completion. <\/p>\n
This Wednesday, the IMF also released its annual review of the Arab country’s finances, and claimed Tunisian authorities are committed to spurring the economy into “sustained” growth. <\/p>\n
A press release from the Fund, signed by Tunisia mission chief Amine Mati, says the country saw 2.4% growth in 2014, but should not perform at the same level this year because of the terrorist attacks that took place in Tunis and Sousse in the first half of the year, and of social tensions still haunting the nation. <\/p>\n
The attacks delivered a severe blow to the tourism industry, one of the country’s primary sources of income, and detracted from the benefits Tunisia could potentially reap from the strengthening of institutions after the political transition, the falling oil prices, and the recovery of the Eurozone, its leading partner in trade. <\/p>\n
By the end of this year, Tunisia is expected to post a current account deficit equivalent to 8.5% of Gross Domestic Product (GDP), and its foreign exchange reserves should be enough to pay for four months’ worth of imports. Additionally, inflation will remain low as a consequence of low energy and food prices, and of a “prudent monetary policy.” <\/p>\n
The Fund’s press release asserts that Tunisian authorities are rolling out measures designed to strengthen the economy, such as reducing energy subsidies and reforming its banking system. The IMF warns, however, that the country must reform its tax system to make it more efficient, transparent and fair. It also remarks that one of the biggest challenges lies in reducing the unemployment rate, currently at 15.2%.<\/p>\n
*Translated by Gabriel Pomerancblum<\/strong><\/p>\n