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Tunisia: Request for an Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Tunisia
Summary:With support from the Stand-By Arrangement (SBA) that expired in December 2015, Tunisia has managed to preserve macroeconomic stability and initiate fiscal and banking reforms in a context marked by a prolonged political transition, spillovers from the crisis in Libya, and numerous exogenous shocks, including terror attacks. However, important vulnerabilities remain: economic activity is weak, employment is low, social tensions linger, spending composition has deteriorated, and external imbalances are high.
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