IMF grants Tunisia $745m loan to battle spread of COVID-19

The sum of $745 million (Dh2.7bn) emergency loan has been granted to the government of Tunisia by the International Monetary Fund to help fight against the impact of the COVID-19 pandemic.

The cash injection will come in handy as the Tunisian economy has taken a big hit due to the outbreak of the virus which has crippled its crucial tourism sector which represents about 10 per cent of the country’s gross domestic product.

“The Covid-19 pandemic has hit Tunisia hard,” Mitsuhiro Furusawa, the IMF’s deputy managing director, said on Saturday. “The pandemic will worsen Tunisia’s already elevated macroeconomic imbalances and will also create urgent fiscal and balance of payment needs.”

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The IMF funding will help Tunisia cover large fiscal and balance of payments needs estimated at 2.6 and 4.7 per cent of GDP, respectively, the IMF said after approving the disbursement of the loan.

Tunisia has 671 confirmed cases of the deadly virus and 25 deaths, according to the Johns Hopkins University’s coronavirus tracker but the loan will now help authorities take measures against the spread of the virus including raising health spending, strengthening social safety nets and supporting small and medium enterprises hit by the crisis.

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