Tunisian Investment Minister Selim Azzabi revealed that Tunisia is negotiating with several countries, including Saudi Arabia, France and Italy, to postpone the expected loan payments this year, in light of expectations that the Tunisian economy will shrink by 6.5% this year due to the Coronavirus crisis.
For his part, the Tunisian Finance Minister, Nizar Yaish, pointed out that "the 2020 budget deficit will reach about 7 percent of GDP, compared to 3 percent in previous forecasts."
He explained during a press conference, when the government ministers presented the economic recovery plan to recover from the effects of the health crisis of the Coronavirus epidemic, that "indebtedness tends to exceed 85 percent," stressing that "the Finance Act of 2020 adopted the beginning of an expected rate of growth in the range of 2.7 %, while the percentage is currently estimated to shrink in the range of 6.5%," stressing that "the budget is difficult and the numbers are difficult, but we have identified measures to reduce their impact."
The Tunisian government plans to offer a 9-month bailout until March 2021, which includes pumping cash to repair damaged institutions and management, improving the investment and business climate, and social assistance.
Source (Al-Arabiya.net website, Edited)
