Tunisia: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for Tunisia
IMF Staff Country Reports, April 14, 2020
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- Tunisia: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for Tunisia
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Bibliographic details
- Published: April 14, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513540474.002
Overview
- Paper discusses Tunisia’s Request for Purchase Under the Rapid Financing Instrument (RFI).
- IMF financing will support the authorities’ emergency measures to contain the spread of the virus and mitigate its human, social, and economic toll amid unprecedented uncertainty.
- The RFI is presented as the most appropriate instrument given time constraints before the Extended Fund Facility expiration on May 19.
Purpose of the RFI
- Support emergency measures to:
- raise health spending,
- strengthen social safety nets,
- support small- and medium-sized firms hit by the crisis.
- Address urgent balance of payments need.
- Ensure an adequate level of international reserves and catalyze additional donor financing.
Rationale for choosing RFI over Extended Fund Facility (EFF)
- Too little time would have been left before the Extended Fund Facility expiration on May 19 to agree on the significant revisions to program objectives required in response to the Covid-19 shock.
- RFI chosen to address immediate needs and time-sensitive financing gaps.
Expected effects and conditionalities
- IMF financing will:
- support containment and mitigation measures,
- help ensure international reserve adequacy,
- catalyze additional donor financing.
- Macroeconomic stability and debt sustainability hinge on strong policy and reform implementation.
- Authorities are committed to maintaining prudent economic policies and resuming fiscal consolidation once the crisis abates to ensure macroeconomic stability and the sustainability of Tunisia’s debt.
- Authorities are committed to resuming fiscal consolidation once the crisis abates.
Subjects and keywords
- Subject: COVID-19, Credit, External debt, Financial institutions, Health, Imports, International trade, Loans, Money, Public debt
- Keywords: COVID-19, CR, Credit, East Africa, emergency assistance loan, emergency support, Europe, Executive Board discussion, Global, government guarantee line, Imports, ISCR, Loans, Middle East, North Africa, pandemic, RFI purchase, Tunisia's economy, Tunisian authorities
Content in this bundle
- 1tunea2020001