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Tunisia,United States : TUNISIA gets US $225 million from IMF

May 2, 2014

The International Monetary Fund (IMF) completed the third review of Tunisia s economic performance under a 24-month program supported by a Stand-By Arrangement (SBA).

This enabled an immediate disbursement of SDR 145.08 million (US $225 million), bringing total disbursements to SDR 573 million (US $888.4 million).

The 2 year SBA in the amount of SDR 1.146 billion (US $1.78 billion, or 400% of Tunisia s quota at the IMF) was approved by the Executive Board.

The Executive Board approved the authorities request for modification of end-June 2014 performance criteria and granted waivers of applicability for the end-March 2014 performance criteria for which data are not available and for which there is no evidence they were not observed.

The authorities made progress on their Fund-supported economic program. End-March quantitative performance criteria appears to have been met, but progress on structural reforms slowed by last year s protracted political crisis.

The adoption of a constitution and the formation of a new government led to greater confidence in political and economic prospects. The growth is moderate, unemployment remains high, and fiscal and external imbalances are elevated.

The current monetary policy stance is appropriate, but needs to be tightened if inflationary or exchange rate pressures arise. The removal of the lending rate cap is essential to strengthening monetary transmission and access to finance. Greater exchange rate flexibility helps to rebuild external buffers, reduce liquidity injections, and improve competitiveness.

Improved data reporting, strengthened supervision, and the new strategic vision for public banks are important steps to reduce fragilities.

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Source: TendersInfo (India)

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