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

IMF News, April 15, 2016

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

Date: April 15, 2016
Issuer: IMF COMMUNICATIONS DEPARTMENT, Media Relations
Mission Chief statement: Mr. Amine Mati, Mission Chief for Tunisia at the International Monetary Fund (IMF), issued the following statement in Washington.
Key agreement: 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).
Next step: Agreement subject to approval by the IMF’s Executive Board, which is expected to consider Tunisia's request next month.

Supports the government’s comprehensive economic reform agenda and the authorities’ economic vision and reform priorities spelled out in the forthcoming Five-Year Development Plan.
Program recognizes the importance of accelerating economic reforms to:
- reduce vulnerabilities,
- boost growth,
- foster sustainable job creation,
- preserve macroeconomic stability,
- modernize public institutions,
- boost private sector activity,
- reinforce the stability and efficiency of the financial sector,
- achieve higher inclusive growth and make a significant dent in unemployment, particularly for the youth.

Fiscal and public spending:
- Focus on boosting public investment.
- Re-orient public expenditure towards priority investments.
- Improve public service delivery through a comprehensive civil service reform that also contains the wage bill.
Taxation:
- Make the tax system more equitable and fair.
- Adoption of an equity-enhancing tax strategy identified as a near-term priority.
Financial sector and access to finance:
- Improve access to finance for small businesses.
- Strengthen central bank independence and banking sector stability through draft legislation.
- Complete restructuring of the three public sector banks to ensure sustainable operations.

Approval of draft legislation aimed at strengthening central bank independence and banking sector stability.
Completion of the restructuring of the three public sector banks to ensure that they operate on a sustainable footing.
Adoption of an equity-enhancing tax strategy.

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

Press Release No. 16/168 — April 15, 2016, IMF COMMUNICATIONS DEPARTMENT.