Press Release No. 16/168

Press Release: IMF Reaches Staff-Level Agreement with Tunisia on a Four-Year US$2.8 Billion Extended Fund Facility

April 15, 2016

Mr. Amine Mati, Mission Chief for Tunisia at the International Monetary Fund (IMF), issued the following statement in Washington today:

“I am pleased to announce that, in support of the government’s comprehensive economic reform agenda, the Tunisian authorities and IMF staff have reached a staff-level agreement on a 48-month Extended Fund Facility (EFF) for 375 percent of Tunisia’s quota in the IMF (about $2.8 billion). This agreement will be subject to approval by the IMF’s Executive Board, which is expected to consider Tunisia's request next month.

“The EFF supports the authorities’ economic vision and reform priorities spelled out in the forthcoming Five-Year Development Plan. The government’s economic program recognizes the importance of accelerating the pace of economic reforms for Tunisia to reduce vulnerabilities, boost growth, and foster sustainable job creation. Preserving macroeconomic stability, modernizing public institutions, boosting private sector activity, and reinforcing the stability and efficiency of the financial sector are essential to achieve higher inclusive growth and make a significant dent in unemployment, particularly for the youth.

“To this end, the Fund-supported program focuses on boosting public investment, making the tax system more equitable and fair, and improving access to finance for small businesses. Building on the achievements of the previous program, the EFF seeks to re-orient public expenditure towards priority investments and to improve public service delivery through a comprehensive civil service reform that also contains the wage bill.

“Near-term priorities include the approval of draft legislation aimed at strengthening central bank independence and banking sector stability; the completion of the restructuring of the three public sector banks to ensure that they operate on a sustainable footing; and the adoption of an equity-enhancing tax strategy.

“With the implementation of these policies, Tunisia will be better placed to address economic challenges and mitigate risks that could arise from a worsening international economic environment or rising regional security tensions. Overall, the EFF will help the Tunisian authorities achieve their objectives of generating faster and more inclusive growth, reduce regional inequalities, and raise the living standards of all Tunisians.”