Tunisia signs two loan agreements with the Arab Monetary Fund

Dec 03, 2013

The Arab Monetary Fund has granted a $147.4 million (€108.8 million) loan to the Central Bank of Tunisia (BCT), as part of two agreements signed by both parties last week.

The Arab Monetary Fund has granted a $147.4 million (€108.8 million) loan to the Central Bank of Tunisia (BCT), as part of two agreements signed by both parties last week.

The first loan - worth $55.3 million - covers the Structural Adjustment Facility for the financial and banking sectors,
and will
support the efforts of the BCT to reform the legislation on currency exchange, according to a press release from the BCT published by newspaper La Presse.

The second - worth $92.1 million - is related to the Structural Adjustment Facility for the public finance sector and aims to consolidate reforms in the fiscal area.

In addition, a $65 million line of credit
was also signed between the BCT and the program of Arab Trade Financing, in a bid to finance exporters and importers in the field of Arab trade.

These agreements follow the recent downgrading of Tunisia's sovereign debt by rating agencies.

In October, Fitch Ratings downgraded the country's rating of Tunisia (BB +) to (BB-) with a negative outlook.

The downgrade was explained by the delay in political transition and the growing uncertainty about the ultimate success of this process, the agency said on its official website.ADNFCR-2976-ID-801667899-ADNFCR