São Paulo – The International Monetary Fund (IMF) will provide a USD 2.8 billion loan to Tunisia over the next four years, via a borrowing line known as an Extended Fund Facility (EFF). This Friday (15th), the Fund reported that the deal is pending approval from its Executive Board, which should happen next month. <\/p>\n
According to the IMF, the loan is intended to reorient public expenditure in order to boost investment and improve public service delivery. This should take place through a civil service reform and wage bill containment. The partnership should also strengthen central bank independence, increase banking sector stability and complete the restructuring of the three public banks. <\/p>\n
“With the implementation of these policies, Tunisia will be better placed to address economic challenges and mitigate risks that could arise from a worsening international economic environment or rising regional security tensions,” the IMF claimed in a press release. It also said the loan should make the tax system more equitable and fair and improve access to finance for small businesses. <\/p>\n
The EFF is awarded to countries with low economic growth and balance of payments imbalances. Its peculiarities include a longer repayment term, ranging from four-and-a-half to ten years. Other lines of financing must be repaid in up to five years. <\/p>\n
Tunisia is undergoing a deep economic restructuring, after completing the political transition that culminated with a new Constitution and government. The protests that became known as the Arab Spring first erupted in the North African country, in 2010, before spreading to other countries in the region. <\/p>\n
*Translated by Gabriel Pomerancblum<\/strong><\/p>\n