(Ecofin Agency) - Tunisia issued a €700 million Eurobond on the international debt market at a rate of 6.37%, the finance ministry announced on July 10. The operation was oversubscribed at €2.2 billion.
This fundraising, arranged by banking groups Natixis, Citigroup and Standard Chartered Bank, aims to finance the country's budget deficit, which is expected to reach 3.9% of gross domestic product (GDP) in 2019, up from around 5% last year.
Tunisia says it needs $2.5 billion in external aid this year and issued last October a 500 million Eurobond at a rate of 6.75%. It also benefited from $24 million from the International Monetary Fund (IMF) last June under the sixth review of the $2.8 billion Extended Credit Facility Program (ECF) approved in 2016.
The Tunisian economy was hit by political and security unrest following the popular uprising that ousted President Zine el-Abidine Ben Ali's regime in 2011. Public debt now stands at 74% of GDP.