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Tunisia Resorts to Global Markets to Raise USD3 Billion

Tunisia Resorts to Global Markets to Raise USD3 Billion

Sunday, 29 October, 2017 - 12:15
Women look at sale signs placed on a shop's windows while walking through central Mehdia,Tunisia, August 17, 2017. REUTERS/Zoubeir Souissi

Tunisia is willing to resort to global financial markets next year to get a minimum of TND7.4 billion (around USD3 billion) of foreign funds to fill the budget gap.

The Tunisian government expects the budget deficit to reach 4.9 percent of the GDP in 2018 compared to 6.1 percent in 2017. Tunisia is also anticipated to issue financial bonds worth TND1.4 billion (USD566 million) to the global markets during the upcoming period.

It seeks to request collateral security from the US worth USD500 million, knowing that the US granted Tunisia collateral securities of one billion dollar in 2011 to overcome challenges facing the public budget, back then.

According to economists, the Tunisian economy needs not less than TND12.9 billion (USD5.2 billion) during 2018 distributed as TND7.4 billion from foreign funds and TND5.5 billion that the government will work on getting from the internal market.

In this matter, Economist Ezzedine Suaidan stated that the Tunisian economy is still in need of the foreign support to restore its solidity and to to ensure the funding of basic economic requirements.

He hinted on the pressures exerted on the country in the current time since the fluctuation of exports’ value and the effect of the European slowdown on the its economy. Also the tourist sector, which used to bring hard currency, still requires recovery.

As for the investment sector, it needs some time to become an effective contributor in pushing growth and providing job opportunities, added Suaidan.

The Tunisian government enacted, few days ago, a supplementary financial law, after all previously adopted hypotheses failed and after the state budget became in need of USD739 million to restore its balance.

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