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Algeria Lends $300 Million to Tunisia

A general view shows a empty street in Sidi Bou Said, an attractive tourist destination, amid a coronavirus lockdown, Tunis, Tunisia, April 1, 2020. (Reuters)
A general view shows a empty street in Sidi Bou Said, an attractive tourist destination, amid a coronavirus lockdown, Tunis, Tunisia, April 1, 2020. (Reuters)
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Algeria Lends $300 Million to Tunisia

A general view shows a empty street in Sidi Bou Said, an attractive tourist destination, amid a coronavirus lockdown, Tunis, Tunisia, April 1, 2020. (Reuters)
A general view shows a empty street in Sidi Bou Said, an attractive tourist destination, amid a coronavirus lockdown, Tunis, Tunisia, April 1, 2020. (Reuters)

Tunisia said Tuesday it had received a loan from Algeria, the day before a visit by Algerian President Abdelmadjid Tebboune.

The official journal said that President Kais Saied had signed off a deal reached on December 9 for "a loan worth $300 million", around 266 million euros.

Tunisia's public finances have been battered by a decade of political instability, low investment and structural problems, with debts approaching 100 percent of GDP and unemployment at 18 percent.

Tunisia's economy has grown at just 0.6 percent a year since its 2011 revolution, while inflation has surged at six percent a year.

An unwelcoming business environment has discouraged investors.

The Covid-19 pandemic made the situation in the North African country far worse, slashing jobs in the vital tourism sector, high commodity prices have hurt reserves, and a drought has battered farmers, AFP reported.

Tunis has received economic aid from the European Union and is seeking its fourth aid program in 10 years from the International Monetary Fund, aiming to receive a loan of nearly $4 billion before the end of the year.

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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters

The credit rating agency “Moody’s Ratings” upgraded Saudi Arabia’s credit rating to “Aa3” in local and foreign currency, with a “stable” outlook.
The agency indicated in its report that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, the advancements are expected to reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government’s ongoing efforts to utilize available fiscal resources to diversify the economic base through transformative spending were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position.
In its report, the agency noted that the planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of gross domestic product (GDP).
Moody's expected that the non-oil private-sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the Kingdom’s exposure to oil market developments.
In recent years, the Kingdom achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.