Summary:

During the week of 31 October 2022, two development funds extended credit lines to Tunisia with the intent of alleviating economic pressures. The African Development Bank (AfDB) extended an $80 million line of credit to help address food insecurity. The Arab Monetary Fund (AMF) extended a $74 million line of credit to help address budget shortfalls and facilitate international trade. While acknowledging the challenges faced by the Tunisian economy, the AMF lenders highlighted the positive signs from 2022, including recoveries in tourism, agricultural, and some areas of manufacturing.

Outlook:  

We will be closely watching how investors and creditors respond in the short and medium term to the International Monetary Fund (IMF) loan decision. While miniscule compared to the $1.9 billion loan extended by the IMF, these loans may represent a positive trend for the Tunisian economy. As lenders look ahead to increased stability following the disbursement of IMF funds, there may be greater interest from investors to explore the Tunisian marketplace in the medium term. The 17 December parliamentary elections will also present an opportunity for Tunisian to demonstrate stability to potential investors and creditors.