Tunisia gets $500 million loan from World Bank to supports its budget

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An official source told Reuters that Tunisia secured a $500 million loan from the World Bank to support its budget. As a result of the loan, Tunisia’s foreign exchange reserves were raised to the equivalent of 78 days of imports, up from the equivalent of 68 days seen in recent weeks.

The loan is aimed at opening sectors to investment, creating opportunities for small businesses and promoting private investments.

To help cover this year’s deficit, Tunisia plans to issue $1 billion in bonds in early October 2018. The country expect its economic growth to increase to 3.5 percent in 2019 from an expected 2.9 percent in 2018. The progress will be driven by recovery of the tourism industry and an improved agricultural sector.

With unemployment and inflation increasing, Tunisia’s economy has been in crisis since the removal of Zine           al-Albidine Ben Ali in 2011. Praised as a model of democratic transition, the country has struggled to deliver on planned economic reforms to help create jobs and cut public deficits.

 

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