The Tunisian parliament approved a government request for direct financing from the Central Bank worth seven billion dinars (about 2.25 billion dollars). The move aims to repay external debt, including 850 million euros due on Feb. 16.
The move highlights Tunisia's severe difficulties, especially as it will repay $4 billion in foreign debt in 2024, up 40 percent from 2023, amid a dearth of external financing for a government struggling to fix its struggling public finances.
Central Bank Governor Marwan Abbasi told parliament's finance committee that repaying an 850 million euro foreign loan would lead to a loss of currency reserves for 14 days of imports and would have an impact on the exchange rate but would not affect inflation.
Source (CNBC Arabia Website, Edited)
