Tunisia- Tunisia plans a bond issue of EUR 1,000 million to finance the state’s budget. This caused a debate in the Tunisian Parliament between government representatives and opposition parties on continuity of foreign borrowing and not relying on own resources.
Finance Minister Lamia Zribi said, at a hearing session held Friday by the parliamentary Finance, Planning and Development Committee, that this loan will be dedicated to financing the state budget which posts an additional deficit of 1.6 billion TND (USD500 million), compared with forecasts of the state budget for the year 2016.
According to the minister, this deficit is explained by the decrease of own resources of the state, those tax and non-tax, coupled with higher expenses, which caused an increase in financing requirements from 6.4 billion TND to 7.8 billion TND.
Until October 20, 2016, financial needs were covered by 2.8 TND of resources from the domestic market and 3.4 TND from the external market.
The Governor of the Central Bank of Tunisia (BCT), Chedly Ayari said that the role of the BCT is a technical role and is not involved in decisions on credit measures and conditions thereto.
He added that the role of the BCT is limited to that of intermediary between the market and the Ministry of Finance, indicating that external funding must be made on the financial market, to spare the state all the conditions required by international and regional banks.