Tunisia and the International Monetary Fund reached an agreement on a bailout of USD 2.8 billion, the IMF said on Friday, adding that Tunisia must accelerate economic reforms to which it had committed.
The new four-year deal, which must still be approved by the IMF’s executive board, will replace a $1.6bn bailout that expired at the end of last year.
The IMF programme is conditional on Tunisia accelerating economic reforms, including of its tax system, civil service and passage of legislation strengthening the central bank’s independence. It also calls for measures including a restructuring of the country’s three public sector banks and an improvement in the ability of small businesses to access credit.
“With the implementation of these policies, Tunisia will be better placed to address economic challenges and mitigate risks that could arise from a worsening international economic environment or rising regional security tensions,” said Amine Mati, the Fund’s mission chief for Tunisia, in a statement.