The President of Tunisia discusses the necessary reforms with the Governor of the Central Bank

The President of Tunisia, Kais Saied, received today, Thursday, the Governor of the Central Bank of Tunisia, Marouane Abbasi, who presented him with the bank’s annual report for the year 2020.

This meeting was dedicated to examining the economic and financial situation in Tunisia and the urgent necessary reforms that need to be taken in parallel with political reforms to achieve development, as well as addressing other issues related to public finance and public debt and the efforts made by all parties to prepare the supplementary budget law for the year 2021 and the budget law for the year 2022.

Saeed discussed with the Governor of the Central Bank possible scenarios for emerging from the crisis, especially in light of the positive indications on the beginning of the recovery of some economic sectors to their normal movement, as well as discussing Tunisia’s relations with international donor organizations in the next period.

The Board of Directors of the Central Bank of Tunisia, during its ordinary meeting held on Wednesday, expressed concern about the “serious shortage of external financial resources. in change of important needs to complete the financing of the state budget for the year 2021 “, which reflects the fear of international lenders in the light of the deterioration of the sovereign numbering of the country and the absence of a New program with the IMF.

The Council underlined that the issue requires the activation of bilateral financial cooperation during the remainder of the year 2021 to mobilize as many external resources as possible in order to avoid monetary financing during this period, as it includes repercussions not only on the level of inflation , but also on foreign exchange reserves and on the management of the price of foreign currency The exchange of the dinar, in addition to its negative impact on Tunisia’s relationship with donor financial institutions and sovereign numbering agencies.

According to the Tunisian news agency; The Council stressed that the deterioration of public finances, which pays in a fragile state, in addition to the repercussions of the increase in international oil prices, would undermine the sustainability of public debt, in addition to the negative effects of the high public sector indebtedness to the banking sector, in particular on its ability to finance economic institutions. He added that the continuation of this situation will have very negative repercussions on the external balances and on the foreign exchange market.

The Central Bank sees the need to accelerate by giving clear signals to local and foreign investors regarding the restoration of the pace of economic activity, macro and financial balances, strengthening public sector governance, improving the business climate and increased investment efforts.

The board also decided to keep the central bank’s key interest rate unchanged, noting that the central bank “will continue to play its role in supporting the national economy and closely monitor the evolution of economic, monetary and financial indicators” .

During its meeting, the Council touched on the latest developments in the economic, monetary and financial situation, in in particular the data relating to economic activity.In the second quarter of 2021, the gross domestic product (GDP) increased by 16.2%, compared to the same quarter of 2020 and decreased by 2% Compared to the previous three, as a result, in in particular, the basal effect of the decline in economic activity in the same period of 2020.

These recorded results also highlight the relative recovery of some sectors, in especially the exporting laboratory industries, in connection with the continuous improvement of demand fromarea of the euro, in addition to the significant improvement in hydrocarbon production due to the contribution of the Nawara and Halaq Al-Manzil fields to production and the gradual return of the phosphate sector.

On the other hand, according to the Central Bank, some sectors still complain about the continuing impact of the Covid-19 health crisis, in particularly the service sector.

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