(Ecofin Agency) - In October, Tunisia reached a US $1.9 billion agreement with the IMF to support its reform agenda. To secure more funding for the agenda, it is also discussing with other partners, including the Arab Monetary Fund.

The Arab Monetary Fund will provide a US$74 million loan to support Tunisia’s budget, local media outlets announced last Friday, citing the Central Bank of Tunisia.

The financing will be granted in three tranches of US$37 million each repayable over five years with a 30-month grace period. It aims to support the country's restructuring program, notably the restoration of financial balances and the reduction of the current account deficit.

The loan is announced a few weeks after a US$1.9 billion extended credit facility agreement with the IMF.  The agreement aims to restore Tunisia's external and fiscal stability and strengthen social protection while promoting strong sustainable and more inclusive growth and private sector-led job creation.

Thanks to the financing secured, Tunisia wants to address the sociopolitical and economic crisis it is facing in a post-pandemic context marked by inflationary pressures affecting purchasing power. In 2020, due mainly to the coronavirus pandemic, the country recorded a negative 8.7% growth. In 2021, it resumed with positive growth (3.3%). For 2022, the IMF forecasts a positive albeit lower growth (2.2%).