Tunisia has estimated it would need some 7 billion dinars ($4.4 billion) in foreign assistance to support its budget next year — an amount it plans to raise through loans from multilateral development banks, among other sources.
The country’s finance minister, Slim Besbes, told Reuters the Tunisian government is in talks with the World Bank for a potential $500 million loan. It has also approached the African Development Bank for another $500 million loan, the minister added. He also noted the United States’ pledge to guarantee a $500 million loan for Tunisia.
In addition to seeking loans from multilateral institutions, Tunisia plans to issue Islamic bonds for the first time next year. The goal, Reuters says, is to mobilize up to 1 billion dinars. Tunisia will also work more closely in developing Islamic finance, the news agency adds.
Tunisia’s estimated financial requirement for next year would primarily cover expenses for rebuilding, recovery and reconciliation activities. These include planned compensation for former prisoners freed after the popular uprising that led to the ouster of President Zine El Abidine Ben Ali, the development of the country’s less affluent areas, social programs for the poor, and jobs creation.
As senior staff writer, Ivy Mungcal contributes to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.