Tunisia Borrows $400M from Local Banks

Tunisia Borrows $400M from Local Banks
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Tunisia Borrows $400M from Local Banks

Tunisia Borrows $400M from Local Banks

Tunisia's Finance Ministry has signed a syndicated loan of €356 million (usd399.6 million) from a pool of twelve local banks to finance the state budget.

The loan agreement was signed on March 26, 2019, by the minister of finance Ridha Chalghoum and the managers of the 12 banks in the presence of the governor of the central bank of Tunisia, Marouen Abassi.

Two forms of repayment of this loan are planned, according to the choice of banks. The first formula is paying back three equal installments over three years with an interest rate fixed at 2.25%.

The second formula is to repay the credit in one installment, after three years and with an interest rate of 2.5%, the ministry said in a statement.

Chalghoum said the credit is “a form of financing appropriate to the conditions and cost.”

Abassi hoped that the Tunisian economy would achieve the desired growth and hopes for investment, which would promote production and ensure liquidity in foreign exchange and in Tunisian dinar.

In this context, Ezzeddine Saidan, a Tunisian economic and financial expert, said that such an agreement injects the Tunisian economy that is suffering a scarcity in resources with fresh blood. He added that the delay in the sixth payment of the IMF loan makes funding the public finance an urgent matter.

This is the second time the Tunisian government borrows from foreign banks in a three-year period – in 2017, it took a EUR250 million loan to fund the state budget.



Oil Edges up as Investors await OPEC+, Tariff Talks

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Edges up as Investors await OPEC+, Tariff Talks

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices were slightly higher on Tuesday as investors assessed expectations that OPEC+ will announce an output hike for August at an upcoming meeting as well as trade negotiations. Brent crude was up 54 cents, or 0.8%, to $67.28 a barrel at 1133 GMT, while US West Texas Intermediate crude was up 56 cents, or 0.9%, to $65.67 a barrel.

The market's main focus is the 411,000-barrel-per-day production hike that OPEC+ is expected to announce for August in a meeting on July 6, said Saxo Bank analyst Ole Hansen, adding that this was partially offset by potential trade deals improving the demand outlook.

"The market is now concerned that the OPEC+ alliance will continue with its accelerated rate of output increases," ANZ senior commodity strategist Daniel Hynes said in a note. Four OPEC+ sources told Reuters last week that the group - comprising OPEC and allies including Russia - plans to raise output by 411,000 bpd in August, following similar hikes in May, June, and July, Reuters reported.

If approved, this would bring OPEC+'s total supply increase for the year to 1.78 million bpd, equivalent to more than 1.5% of global oil demand.

Investors are also watching trade negotiations ahead of US President Donald Trump's tariff deadline of July 9. US Treasury Secretary Scott Bessent warned that countries could be notified of sharply higher tariffs despite good-faith negotiations as a July 9 deadline approaches, when tariff rates are scheduled to revert from a temporary 10% level to Trump's suspended rates of 11% to 50% announced on April 2.

The European Union wants immediate relief from tariffs in key sectors as part of any trade deal with the US due by the July 9 deadline, EU diplomats told Reuters.

Morgan Stanley expects Brent futures to retrace to around $60 by early next year, with the market being well supplied and geopolitical risk abating following the Israel-Iran de-escalation. It expects an oversupply of 1.3 million bpd in 2026.

A 12-day war that started with Israel targeting Iran's nuclear facilities on June 13 pushed up Brent prices. They surged above $80 a barrel after the US bombed Iran's nuclear facilities and then slumped to $67 after Trump announced an Iran-Israel ceasefire.