The Arab Monetary Fund has extended a $74 million loan to Tunisia to help the North African nation’s fiscal position and boost its gradually recovering economy.
The loan package will support the country, which is still reeling from an economic crisis, in implementing reforms to promote recovery, as well as encourage more support from other regional and international financial institutions, the Abu Dhabi-based AMF said in a statement released at the weekend.
The agreement, which was forged on Friday, was signed by Abdulrahman Al Hamidy, director general and chairman of the AMF’s board of executive directors, and Marouane El Abassi, governor and chairman of the Central Bank of Tunisia’s executive board.
“The AMF supports the efforts of its member countries to implement economic, financial, monetary and structural reforms, in face of various challenges, through a number of means, including financing the needs of the balance of payments and public budgets, and financing trade,” the AMF said in the statement.
Tunisia’s economy was severely affected by Russia’s military offensive in Ukraine, causing its current account deficit to widen. A Covid-19-induced slowdown, high debt, and deteriorating finances exacerbated by the rise in global energy and commodity prices plunged it into its worst economic crisis.
Government debt rose to almost 80 per cent of the gross domestic product in 2021, according to official state estimates, which was lower than the 85.6 per cent initially forecast in its 2021 budget.
