IMF completes the first review of Tunisia’s economic program

IMF has completed the first review of Tunisia’s economic program and allows the authorities to draw US$314.4 million, bringing total disbursements under the arrangement to US$628.8 million.


  • The government’s reform program supported by the EFF aims at reducing the fiscal deficit to stabilize public debt below 70 percent of GDP by 2020 while raising investment and social spending.
  • Monetary tightening and greater exchange rate flexibility will help contain inflation, improve competitiveness, and preserve international reserves.
  • To achieve a growth-friendly and socially-conscious fiscal consolidation, it will be critical to implement the 2018 tax package and the new Large Taxpayers Unit, which will both increase tax fairness.

Furusawa

Mitsuhiro Furusawa

On June 12, 2017, the Executive Board of the International Monetary Fund (IMF) completed the first review of Tunisia’s economic program supported by an arrangement under the Extended Fund Facility (EFF) and allows the authorities to draw US$314.4 million, bringing total disbursements under the arrangement to about US$628.8 million.

The four-year EFF arrangement in the amount of SDR 2.045625 billion (about US2.83 billion, 375 percent of Tunisia’s quota) was approved by the Executive Board on May 20, 2016 .

Following the Executive Board discussion on Tunisia, Mr. Mitsuhiro Furusawa, Deputy Managing Director, and Acting Chair, said, “The Tunisian authorities remain firmly committed to macroeconomic stability and sustainable increases in youth employment and improvement in standards of living of Tunisia’s population”.

tuni-MMAP-md“They plan to intensify their policy effort to overcome slower growth and delays in policy implementation. Their fiscal plans aim to achieve gradual debt reduction and increase spending on investment and social programs.

“Continued tightening of monetary policy and exchange rate flexibility will help contain inflation, improve competitiveness, and preserve international reserves. Reforms to restructure public banks, enhance governance, and improve the business climate will strengthen the foundation for inclusive growth and strong job creation,” he said.

The government’s reform program supported by the EFF aims at reducing the fiscal deficit to stabilize public debt below 70 percent of GDP by 2020 while raising investment and social spending, and more exchange rate flexibility combined with maintaining inflation below 4 percent.

It also aims at ensuring pension sustainability and better protecting vulnerable households, as well as accelerating reforms to improve governance and foster private sector-led, job-creating growth.

In completing the review, the Executive Board approved the authorities’ request for waivers for non-observance of performance criteria on net international reserves, net domestic assets, and the primary fiscal deficit. The Executive Board also approved the authorities’ request for re-phasing of remaining access into six semi-annual installments.

 

 

 

 

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Categories: Development

2 replies

  1. Informative and timely report. My trouble is the figure reporting; can you re-write the figure to words so it become reader-friendly for poor figures readers like me. Thanks

    Like

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