{
  "title": "Press Release: IMF Executive Board Approves US$2.9 billion Extended Arrangement under the Extended Fund Facility for Tunisia",
  "publication": "IMF News, May 20, 2016",
  "sourceUrl": "https://www.imf.org/en/news/articles/2015/09/14/01/49/pr16238",
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  "summary": "The Executive Board approved a 48-month extended arrangement under the Extended Fund Facility (EFF) for Tunisia for an amount equivalent to SDR 2.04 billion (about US$2.9 billion, or 375 percent of Tunisia’s quota).",
  "publishDate": "2016-05-20",
  "sections": [
    {
      "heading": "Executive Board decision and financing",
      "content": "- The Executive Board approved a 48-month extended arrangement under the Extended Fund Facility (EFF) for Tunisia for an amount equivalent to SDR 2.04 billion (about US$2.9 billion, or 375 percent of Tunisia’s quota).\n- An amount equivalent to SDR 227.29 million (about US$319.5 million) is available for immediate disbursement.\n- The remaining amount will be phased in over the duration of the program, subject to eight program reviews."
    },
    {
      "heading": "Program objectives and scope",
      "content": "- The program aims at promoting stronger and more inclusive growth by consolidating macroeconomic stability, reforming public institutions—including the civil service—facilitating financial intermediation, and improving the business climate.\n- Implementation is centered around four pillars:\n  - Consolidating macroeconomic stability.\n  - Reforming public institutions.\n  - Promoting financial intermediation.\n  - Improving the business climate."
    },
    {
      "heading": "Key policy recommendations and priorities (as stated by Mr. Mitsuhiro Furusawa, Deputy Managing Director, and Acting Chair)",
      "content": "- Preserve macroeconomic stability while addressing fiscal, external, structural, and social challenges.\n- Demonstrate strong commitment to sound policies, early and decisive action on key structural reforms, and consensus-building and communication efforts, particularly on socially difficult reforms.\n- Fiscal policy:\n  - Adopt a prudent fiscal policy that puts public debt on a downward path to ease financing constraints, reduce external imbalances, and ensure sustainability.\n  - Implement a more progressive and efficient tax system to broaden the tax base and improve equity.\n  - Monitor fiscal risks and accelerate governance efforts.\n- Public administration and social policy:\n  - Undertake a comprehensive civil service reform to improve public service delivery and increase fiscal space for priority investment and well-targeted social spending.\n- Monetary and exchange rate policy:\n  - Enhance central bank independence to strengthen the effectiveness of monetary policy.\n  - Allow greater exchange rate flexibility to strengthen reserve buffers and facilitate external adjustment.\n- Banking and financial sector:\n  - Adopt and implement critical banking sector legislation.\n  - Restructure public banks and strengthen the banking resolution and supervision frameworks.\n  - Develop credit bureaus and relax caps on lending rates to increase access to finance.\n  - Implement a risk-based supervision system, a proper resolution framework, and strengthened regulations.\n  - Implement the new bankruptcy law and support banks in resolving non-performing loans.\n  - Promote financial inclusion through the development of microfinance institutions.\n- Business climate and structural reforms:\n  - Streamline existing business procedures and enhance market access through a new investment code.\n  - Implement the competition law and the law on public-private partnerships.\n  - Simplify tax, customs, and business formalities; about 530 such formalities were completed over the past two years to reduce administrative burden.\n  - Proceed gradually with labor market reform, building consensus to finalize a national employment strategy addressing skills mismatch and worker protection."
    },
    {
      "heading": "Recent economic developments (Annex summary)",
      "content": "- With the implementation of the IMF-supported Stand-By Arrangement (SBA) that expired in December 2015, Tunisia preserved macroeconomic stability and initiated fiscal and banking reforms amid a prolonged political transition, spillovers from the crisis in Libya, and exogenous shocks, including terror attacks.\n- Remaining challenges: weak economic activity, low employment, lingering social tensions, deteriorated spending composition, and high external imbalances.\n- In 2015 the authorities formulated a five-year economic vision with five pillars: effective public institutions; economic diversification; human development and social inclusion; regional development; and green economic growth."
    },
    {
      "heading": "Program summary measures (selected)",
      "content": "- Consolidating macroeconomic stability:\n  - Fiscal policy that creates space for priority capital spending and aims at putting public debt on a downward path.\n  - Prudent monetary policy aimed at containing inflation.\n  - Greater exchange rate flexibility to preserve reserves against exogenous shocks.\n- Reforming public institutions:\n  - Civil service reform to improve public service delivery and contain the wage bill.\n  - Progress energy subsidy reform while strengthening the social safety net.\n  - Foster monitoring and performance of State Owned Enterprises (SOEs).\n  - Boost equity-friendly revenue mobilization.\n  - Strengthen public financial management and transparency, including enhanced anti-corruption initiatives.\n- Promoting financial intermediation:\n  - Continue public bank restructuring.\n  - Strengthen supervision, resolution frameworks, and regulations.\n  - Implement new bankruptcy law to address non-performing loans.\n- Improving the business climate:\n  - Adopt a new investment code.\n  - Streamline tax incentives and simplify procedures to reduce entry barriers and protect investor rights."
    },
    {
      "heading": "Selected economic and financial indicators (as presented)",
      "content": "- Real GDP (percent change): 2012: 3.9; 2013: 2.4; 2014: 2.3; 2015 (Pre.): 0.8; 2016 (Proj.): 2.0; 2017 (Proj.): 3.0.\n- GDP deflator (percent change): 2012: 5.0; 2013: 4.3; 2014: 5.2; 2015 (Pre.): 4.9; 2016 (Proj.): 5.1; 2017 (Proj.): 3.3.\n- Consumer price index (CPI), end of period: 2012: 5.8; 2013: 5.9; 2014: 5.7; 2015 (Pre.): 4.8; 2016 (Proj.): 4.1; 2017 (Proj.): 4.0.\n- Gross national savings (in percent of GDP): 2012: 16.1; 2013: 14.4; 2014: 14.0; 2015 (Pre.): 12.9; 2016 (Proj.): 14.1; 2017 (Proj.): 15.3.\n- Gross investment (in percent of GDP): 2012: 24.4; 2013: 22.7; 2014: 23.2; 2015 (Pre.): 21.8; 2016 (Proj.): 22.3; 2017 (Proj.): 22.3.\n- Central government total revenue (excluding grants, percent of GDP): 2012: 24.0; 2013: 24.9; 2014: 25.4; 2015 (Pre.): 23.0; 2016 (Proj.): 23.9; 2017 (Proj.): 24.1.\n- Central government total expenditure and net lending (percent of GDP): 2012: 29.8; 2013: 32.4; 2014: 29.7; 2015 (Pre.): 28.5; 2016 (Proj.): 28.0; 2017 (Proj.): 28.0.\n- Central government overall balance (excluding grants, percent of GDP): 2012: -5.8; 2013: -7.5; 2014: -4.3; 2015 (Pre.): -5.5; 2016 (Proj.): -4.6; 2017 (Proj.): -3.9.\n- Central government overall balance (excluding grants, cash basis, percent of GDP): 2012: -9.8; 2013: -5.4; 2014: -4.7.\n- Structural fiscal balance (percent of GDP): 2012: -5.7; 2013: -6.4; 2014: -4.0; 2015 (Pre.): -3.3.\n- Change in the structural fiscal balance (+: improvement, percent of GDP): 2012: -2.4; 2013: -0.7; 2014: 2.1; 2015 (Pre.): 0.0; 2016 (Proj.): 0.3; 2017 (Proj.): 0.7.\n- Central government debt (foreign and domestic, percent of GDP): 2012: 45.5; 2013: 44.5; 2014: 49.0; 2015 (Pre.): 53.2; 2016 (Proj.): 54.6; 2017 (Proj.): 54.5.\n- Foreign currency public debt (percent of total debt): 2012: 61.6; 2013: 59.6; 2014: 62.6; 2015 (Pre.): 68.0; 2016 (Proj.): 68.6.\n- External debt (US$ billions): 2012: 26.0; 2013: 26.7; 2014: 29.3; 2015 (Pre.): 30.7.\n- External debt (in percent of GDP): 2012: 52.9; 2013: 57.0; 2014: 61.4; 2015 (Pre.): 63.5; 2016 (Proj.): 69.0; 2017 (Proj.): 71.4.\n- Debt service ratio (percent of exports of GNFS): 2012: 12.1; 2013: 9.5; 2014: 8.4; 2015 (Pre.): 10.2; 2016 (Proj.): 12.8; 2017 (Proj.): 16.7.\n- Credit to the economy (percent change): 2012: 8.8; 2013: 6.8; 2014: 9.4; 2015 (Pre.): 6.4; 2016 (Proj.): 7.1; 2017 (Proj.): 7.3.\n- Broad money (M3 of the financial system, percent change): 2012: 6.6; 2013: 7.8; 2014: 5.3; 2015 (Pre.): 6.5.\n- Exports of goods, f.o.b. (in $ percent change): 2012: -1.9; 2013: -15.9; 2014: -2.6; 2015 (Pre.): 5.5.\n- Imports of goods, f.o.b. (in $ percent change): 2012: -0.5; 2013: 1.8; 2014: -18.4; 2015 (Pre.): -1.7.\n- Trade balance (in percent of GDP): 2012: -13.6; 2013: -12.8; 2014: -14.0; 2015 (Pre.): -11.5; 2016 (Proj.): -10.4; 2017 (Proj.): -10.1.\n- Current account (in percent of GDP): 2012: -8.3; 2013: -8.4; 2014: -9.1; 2015 (Pre.): -8.9; 2016 (Proj.): -7.7; 2017 (Proj.): -7.0.\n- Foreign direct investment, net (in percent of GDP): 2012: 1.5; 2013: 1.1; 2014: 2.5; 2015 (Pre.): 2.2.\n- Terms of trade (deterioration -): 2012: 0.2; 2013: 1.4; 2014: 4.2; 2015 (Pre.): 3.7; 2016 (Proj.): -1.5.\n- Gross official reserves (US$ billions, e.o.p): 2012: 8.7; 2013: 7.7; 2014: 7.6; 2015 (Pre.): 8.3; 2016 (Proj.): 8.5.\n- Gross official reserves (in months of next year's imports of goods and services, c.i.f.): 2012: 3.4; 2013: 4.6; 2014: 4.5.\n- GDP at current prices (TD millions): 2012: 70,354; 2013: 75,152; 2014: 80,816; 2015 (Pre.): 85,491; 2016 (Proj.): 91,658; 2017 (Proj.): 97,495.\n- GDP at current prices (US$ billions): 2012: 45.0; 2013: 46.3; 2014: 47.6; 2015 (Pre.): 43.6; 2016 (Proj.): 44.0; 2017 (Proj.): 44.4.\n- Real effective exchange rate (percent change, depreciation -): 2012: -1.49; 2013: -1.90; 2014: -0.20.\n- Interest rate (money market rate, in percent, e.o.p): 2012: 4.7.\n- Stock market TUNINDEX (12/31/1997=1000): 2012: 4,580; 2013: 4,381; 2014: 4,674.\n\nSource: Press Release No. 16/238, May 20, 2016, International Monetary Fund.\n\n---\n\n Content in this bundle\n\n- Pr16238apdf (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\n References\n\n- Tunisia and the IMF\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr16238"
    }
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    "Published: May 20, 2016",
    "The Executive Board approved a 48-month extended arrangement under the Extended Fund Facility (EFF) for Tunisia for an amount equivalent to SDR 2.04 billion (about US$2.9 billion, or 375 percent of Tunisia’s quota).",
    "An amount equivalent to SDR 227.29 million (about US$319.5 million) is available for immediate disbursement.",
    "The remaining amount will be phased in over the duration of the program, subject to eight program reviews.",
    "The program aims at promoting stronger and more inclusive growth by consolidating macroeconomic stability, reforming public institutions—including the civil service—facilitating financial intermediation, and improving the business climate.",
    "Implementation is centered around four pillars:",
    "Preserve macroeconomic stability while addressing fiscal, external, structural, and social challenges.",
    "Demonstrate strong commitment to sound policies, early and decisive action on key structural reforms, and consensus-building and communication efforts, particularly on socially difficult reforms.",
    "Fiscal policy:",
    "Public administration and social policy:",
    "Monetary and exchange rate policy:",
    "Banking and financial sector:",
    "Business climate and structural reforms:",
    "With the implementation of the IMF-supported Stand-By Arrangement (SBA) that expired in December 2015, Tunisia preserved macroeconomic stability and initiated fiscal and banking reforms amid a prolonged political transition, spillovers from the crisis in Libya, and exogenous shocks, including terror attacks.",
    "Remaining challenges: weak economic activity, low employment, lingering social tensions, deteriorated spending composition, and high external imbalances.",
    "In 2015 the authorities formulated a five-year economic vision with five pillars: effective public institutions; economic diversification; human development and social inclusion; regional development; and green economic growth.",
    "Consolidating macroeconomic stability:",
    "Reforming public institutions:",
    "Promoting financial intermediation:",
    "Improving the business climate:",
    "Real GDP (percent change): 2012: 3.9; 2013: 2.4; 2014: 2.3; 2015 (Pre.): 0.8; 2016 (Proj.): 2.0; 2017 (Proj.): 3.0.",
    "GDP deflator (percent change): 2012: 5.0; 2013: 4.3; 2014: 5.2; 2015 (Pre.): 4.9; 2016 (Proj.): 5.1; 2017 (Proj.): 3.3.",
    "Consumer price index (CPI), end of period: 2012: 5.8; 2013: 5.9; 2014: 5.7; 2015 (Pre.): 4.8; 2016 (Proj.): 4.1; 2017 (Proj.): 4.0.",
    "Gross national savings (in percent of GDP): 2012: 16.1; 2013: 14.4; 2014: 14.0; 2015 (Pre.): 12.9; 2016 (Proj.): 14.1; 2017 (Proj.): 15.3.",
    "Gross investment (in percent of GDP): 2012: 24.4; 2013: 22.7; 2014: 23.2; 2015 (Pre.): 21.8; 2016 (Proj.): 22.3; 2017 (Proj.): 22.3.",
    "Central government total revenue (excluding grants, percent of GDP): 2012: 24.0; 2013: 24.9; 2014: 25.4; 2015 (Pre.): 23.0; 2016 (Proj.): 23.9; 2017 (Proj.): 24.1.",
    "Central government total expenditure and net lending (percent of GDP): 2012: 29.8; 2013: 32.4; 2014: 29.7; 2015 (Pre.): 28.5; 2016 (Proj.): 28.0; 2017 (Proj.): 28.0.",
    "Central government overall balance (excluding grants, percent of GDP): 2012: -5.8; 2013: -7.5; 2014: -4.3; 2015 (Pre.): -5.5; 2016 (Proj.): -4.6; 2017 (Proj.): -3.9.",
    "Central government overall balance (excluding grants, cash basis, percent of GDP): 2012: -9.8; 2013: -5.4; 2014: -4.7.",
    "Structural fiscal balance (percent of GDP): 2012: -5.7; 2013: -6.4; 2014: -4.0; 2015 (Pre.): -3.3.",
    "Change in the structural fiscal balance (+: improvement, percent of GDP): 2012: -2.4; 2013: -0.7; 2014: 2.1; 2015 (Pre.): 0.0; 2016 (Proj.): 0.3; 2017 (Proj.): 0.7.",
    "Central government debt (foreign and domestic, percent of GDP): 2012: 45.5; 2013: 44.5; 2014: 49.0; 2015 (Pre.): 53.2; 2016 (Proj.): 54.6; 2017 (Proj.): 54.5.",
    "Foreign currency public debt (percent of total debt): 2012: 61.6; 2013: 59.6; 2014: 62.6; 2015 (Pre.): 68.0; 2016 (Proj.): 68.6.",
    "External debt (US$ billions): 2012: 26.0; 2013: 26.7; 2014: 29.3; 2015 (Pre.): 30.7.",
    "External debt (in percent of GDP): 2012: 52.9; 2013: 57.0; 2014: 61.4; 2015 (Pre.): 63.5; 2016 (Proj.): 69.0; 2017 (Proj.): 71.4.",
    "Debt service ratio (percent of exports of GNFS): 2012: 12.1; 2013: 9.5; 2014: 8.4; 2015 (Pre.): 10.2; 2016 (Proj.): 12.8; 2017 (Proj.): 16.7.",
    "Credit to the economy (percent change): 2012: 8.8; 2013: 6.8; 2014: 9.4; 2015 (Pre.): 6.4; 2016 (Proj.): 7.1; 2017 (Proj.): 7.3.",
    "Broad money (M3 of the financial system, percent change): 2012: 6.6; 2013: 7.8; 2014: 5.3; 2015 (Pre.): 6.5.",
    "Exports of goods, f.o.b. (in $ percent change): 2012: -1.9; 2013: -15.9; 2014: -2.6; 2015 (Pre.): 5.5.",
    "Imports of goods, f.o.b. (in $ percent change): 2012: -0.5; 2013: 1.8; 2014: -18.4; 2015 (Pre.): -1.7.",
    "Trade balance (in percent of GDP): 2012: -13.6; 2013: -12.8; 2014: -14.0; 2015 (Pre.): -11.5; 2016 (Proj.): -10.4; 2017 (Proj.): -10.1.",
    "Current account (in percent of GDP): 2012: -8.3; 2013: -8.4; 2014: -9.1; 2015 (Pre.): -8.9; 2016 (Proj.): -7.7; 2017 (Proj.): -7.0.",
    "Foreign direct investment, net (in percent of GDP): 2012: 1.5; 2013: 1.1; 2014: 2.5; 2015 (Pre.): 2.2.",
    "Terms of trade (deterioration -): 2012: 0.2; 2013: 1.4; 2014: 4.2; 2015 (Pre.): 3.7; 2016 (Proj.): -1.5.",
    "Gross official reserves (US$ billions, e.o.p): 2012: 8.7; 2013: 7.7; 2014: 7.6; 2015 (Pre.): 8.3; 2016 (Proj.): 8.5.",
    "Gross official reserves (in months of next year's imports of goods and services, c.i.f.): 2012: 3.4; 2013: 4.6; 2014: 4.5.",
    "GDP at current prices (TD millions): 2012: 70,354; 2013: 75,152; 2014: 80,816; 2015 (Pre.): 85,491; 2016 (Proj.): 91,658; 2017 (Proj.): 97,495.",
    "GDP at current prices (US$ billions): 2012: 45.0; 2013: 46.3; 2014: 47.6; 2015 (Pre.): 43.6; 2016 (Proj.): 44.0; 2017 (Proj.): 44.4.",
    "Real effective exchange rate (percent change, depreciation -): 2012: -1.49; 2013: -1.90; 2014: -0.20.",
    "Interest rate (money market rate, in percent, e.o.p): 2012: 4.7.",
    "Stock market TUNINDEX (12/31/1997=1000): 2012: 4,580; 2013: 4,381; 2014: 4,674.",
    "[Pr16238apdf (PDF)](/-/media/websites/imf/imported/external/arabic/np/sec/pr/2016/pr16238apdf.pdf){rel=\"external\" type=\"application/pdf\"}",
    "[Tunisia and the IMF](http://www.imf.org/external/country/TUN/index.htm)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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