## 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_

## Source details

**Canonical URL:** [Press Release: IMF Reaches Staff-Level Agreement with Tunisia on a Four-Year US$2.8 Billion Extended Fund Facility](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr16168)

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## Bibliographic details
- Published: April 15, 2016

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### Overview
- 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.

### Program objectives and priorities
- 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.

### Policy focus and measures
- 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.

### Near-term priorities (explicit)
- 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.

### Expected outcomes and risks
- 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.*

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- [Pr16168apdf (PDF)](/-/media/websites/imf/imported/external/arabic/np/sec/pr/2016/pr16168apdf.pdf){rel="external" type="application/pdf"}

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## References

- [Tunisia and the IMF](http://www.imf.org/external/country/TUN/index.htm)
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_Source: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr16168_