(Ecofin Agency) - Tunisia plans to issue $1 billion Eurobonds at the beginning of October 2018 to reduce the 2018 fiscal deficit, Reuters reported on September 14, quoting official sources.

“We will issue $1 billion Eurobonds at the beginning of October [2018] after the IMF has disbursed another installment of its loan to Tunisia”, the sources explained.

Tunisia whose economy was affected by political and security problems following the fall of Ben Ali’s regime expects IMF’s approval for a new installment of $250 million from a total of $2.8 billion by the end of September 2018.

This country previously announced that it would issue Eurobonds during Q1, 2018 but the issuance was repeatedly delayed because of poor performance in the local economy and unfavorable market conditions.  

Tunisia forecasts its economy to grow by 3.5% in 2019, against the 2.9% in 2018, thanks notably to recovery in the tourism sector and good performances in the agricultural sector.  

The government which wishes to reduce its fiscal deficit from 4.9% in 2018 to 3.9% in 2019, evaluates its external financing needs in the coming fiscal year to TND7 billion ($2.53 billion).