Tunisia to receive $2.8 billion loan from IMF

Tunisia is set to receive about 2.8 billion US dollars from a four-year loan programme by the International Monetary Fund (IMF).

IMF reaches deal with Tunisia on $2.8 bln loan program https://t.co/a7yRQmSb0m

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The agreement, which is an Extended Fund Facility, is subject to approval by the IMF’s Executive Board, which is expected to consider the request in May.

Tunisian authorities requested for the loan in order to support its economic vision and reform priorities.

Over the last year, the government has been working to strengthen its economic reforms and has established a five-year development plan. This strategic plan is expected to boost the economy and help solve the country’s relentless woes of unemployment.

“The government’s economic programme recognizes the importance of accelerating the pace of economic reforms for Tunisia to reduce vulnerabilities, boost growth, and foster sustainable job creation,” said Amine Mati, Mission Chief for Tunisia at the IMF.

The country’s parliament has been fixated on passing reforms to bolsters its economy.

According to the IMF, 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.

Meanwhile, the country is set to be heading to the international markets with a 1 billion euro bond issue to raise funds to help cover a budget deficit.

The North African country is seeking to reduce from 8.5 per cent recorded last year to 6.8 per cent by 2020.

Additionally, Tunisia is aiming for a 5 per cent growth in the next four years, an ambitious target for the country that has struggled to grow since the 2011 uprising against deposed President Ben Ali.

The uprising triggered an Arab Spring revolutions across North Africa but also led Tunisia to become a democratic nation.