Tunisia’s Planned $800m Bond Issue Approved by Parliament

Google+ Pinterest LinkedIn Tumblr +

Lawmakers told Reuters that Tunisia’s parliament approved a government plan to issue bonds worth up to $800 million this year.

In October 2018, the country sold a 5-year Eurobond worth 500 million euros with an interest rate of 6.75 percent, but still needs around $2.5 billion in external financing in 2019.

Lawmaker Marouan Felfel told Reuters that “the finance committee approved the government’s plan to issue bonds up to $800 million”. However, the timing of the issuance is still unknown.

Opposition parties have criticised the government over the size of Tunisia’s debt, which hit record levels of around 74 percent of GDP by the end of 2018. They accuse the government of seeking easy solutions through borrowing.

Earlier this year, Prime Minister Youssef Chahed said painful reforms must be launched to keep the deficit under control, but his plans face strong resistance from powerful labour unions.

Share.

Leave A Reply