Tunisia is in talks with Saudi Arabia and the United Arab Emirates to save the coffers of the state in large deficit due to the impact of the economic and political crisis: this was announced by an official of the country's central bank quoted by local media.
The head of funding and external payments of the institute, Abdelkarim Lassoued, reported "advanced discussions with Saudi Arabia and the Emirates to replenish the resources of the state". However, Lassoued did not specify the amount of financial assistance, nor in what form it would be awarded.
The Tunisian economy, characterized by weak growth for 10 years - on average of 0.6% per year - and by inflation of 6% per year, has been hit hard by the coronavirus pandemic that has closed the country depriving it of revenue crucial tourist attractions. The crisis was aggravated by the action of President Kais Saied who assumed full powers on 25 July, dismissing the premier and suspending the parliament dominated by the Islamic party Ennahdha.
The Bank's Board of Directors expressed its concern at the beginning of October about "the severe drying up of external financial resources, in the face of the significant need to complete the state budget for the year 2021".
In mid-October, the international rating agency Moody's downgraded Tunisia's sovereign rating from B3 to Caa1.
(Unioneonline / vl)
