The International Monetary Fund (IMF) has approved the sum of 745-million-dollar loan to help Tunisia stabilise the economy and combat the coronavirus pandemic.
According to the News Agency of Nigeria (NAN), the IMF expects Tunisia to contract by 4.3 per cent in 2020, in what is speculated to be the worst recession since the country’s independence in 1956.
The IMF Deputy Managing Director, Mitsuhiro Furusawa, who disclosed this in a statement said the loan is meant to help Tunisia contain the spread of the virus and mitigate its human, social, and economic toll amid unprecedented uncertainty.
He said: “The COVID-19 pandemic has hit Tunisia hard. The pandemic will worsen Tunisia’s already elevated macroeconomic imbalances and will also create urgent fiscal and balance of payment needs,”
This is the first IMF emergency financing to the Middle East and North Africa region. The IMF said the loan will be used to increase health spending, strengthen social safety nets, and support Tunisian businesses.