Tunisia to Receive IMF Approved $1.7 Billion Bailout

Tunisia to Receive IMF Approved $1.7 Billion Bailout

From African Manager

The International Monetary Fund (IMF) said Friday it has approved an aid package of $ 1.7 billion for Tunisia to support the transition initiated in January 2011.

The Board of Directors of the IMF, which represents 188 member states greenlighted this two-year financial assistance program. As a result of the Board’s decision, an amount equivalent to US$150.2 million is available for immediate disbursement, and the remaining amount will be phased in over the duration of the program, subject to eight program reviews.

The Stand-By Arrangement entails regular access to IMF resources, amounting to 400 percent of Tunisia’s quota, said the Fund in a statement.

“Tunisia has embarked on a moderate economic recovery while facing a challenging international economic environment and pursuing a political transition. A fragile banking sector, pressing social demands, widespread regional disparities, and high unemployment are key challenges, together with widening external and fiscal deficits, Ms. Nemat Shafik, Deputy Managing Director, and Acting Chair, said.

Undermined by political instability, social recurrent and investment mast conflict Tunisian growth remained insufficient to truly begin the rampant unemployment in the country (17% of the active population about).

Read more at africanmanager.com