IMF completes third review of Tunisia’s economy under extended fund facility

The Executive Board of the International Monetary Fund (IMF) completed the third review of Tunisia’s economic program supported by an arrangement under the Extended Fund Facility (EFF).

The Executive Board of the International Monetary Fund (IMF) completed the third review of Tunisia's economic program supported by an arrangement under the Extended Fund Facility (EFF). The completion of the review allows the authorities to purchase an amount equivalent to SDR 176.7824 million (about US$249.1 million), bringing total purchases under the arrangement to the equivalent of SDR 808.1485 million (about US$1,139.0 million).

The four-year EFF arrangement in the amount of SDR 2.045625 billion (about US$2.9 billion, or 375 percent of Tunisia's quota at the time of approval of the arrangement) was approved by the Executive Board on May 20, 2016. The government's reform program that is supported by the EFF arrangement aims at strengthening the recovery by reducing macroeconomic vulnerabilities, ensuring adequate social protection, and fostering private sector-led, job-creating growth.

Priorities include growth-friendly and socially conscious reforms aimed at stabilizing public debt while raising investment and social spending. The monetary policy focuses on curbing inflation, continued exchange rate flexibility, and strengthening international reserves. Structural reforms supported under the arrangement focus on improving governance, the business climate, fiscal institutions, and the financial sector.