(Ecofin Agency) - The assistance is aimed at supporting the reform programs being implemented by Tunisia to address its economic crisis.
The European Union (EU) announced, Wednesday (May 25), the disbursement of a US$ 321.8 million macro-financial assistance to Tunisia. The disbursement was announced in a release published on the EU delegation to Tunisia’s website.
The note states that this aid is the second and last tranche of a program approved to help Tunisia mitigate the economic impact of covid-19 and improve macroeconomic stability.
Ultimately, the long-term and highly-favorable financial assistance “will contribute to alleviating Tunisia's balance of payments and budgetary situation, while supporting the implementation of key economic reforms.”
Tunisia currently faces an economic crisis, forcing authorities to introduce a set of reforms. Through the reforms, the latter want to “improve the sustainability of public finances and public sector reform, enhance the country's social protection mechanisms, foster the modernization and reform of State-owned enterprises, and promote private investment by improving the business climate.”
Let’s note that the country is also negotiating an economic and financial program with the International Monetary Fund (IMF). If approved, the program will be backed by a US$4 billion financial assistance. The country’s economy is improving with the eased Covid-19 related restriction. However, for the World Bank, Tunisia will have to quickly implement structural reforms to accelerate the recovery and preserve macroeconomic stability.