Saturday, Jan 28, 2012
By Summer Said
Of DOW JONES NEWSWIRES
DAVOS, Switzerland (Dow Jones)--Tunisia will need to secure $5 billion in external finances this year to fill the gap in its balance of payment as well as refinancing some of its debt, the central bank governor said Saturday.
"We think that in terms of balance of payment we have a need or a requirement for $5 billion for 2012... that will be to fill the gap of the current balance and refinancing some of our debt," Mustapha Kamel Nabli told Dow Jones Newswires in an interview on the sidelines of the annual World Economic Forum in Davos, Switzerland.
The country will depend on international financial institutions--the World Bank, the African Development Bank, the European Investment Bank--and bonds to fill the gap in the balance of payments deficit of about 7% of economic output this year, Nabli said.
The country will also secure $500 million from Qatar, and the U.S. may offer some financial help too, he said.
A year after a popular uprising threw out Tunisian President Zine al-Abidine Ben Ali, foreign investments are gradually returning to the north African country, Prime Minister Hamadi Jebali said Friday.
Tunisia is under pressure to improve its economy, which was once praised by Western governments for its solid financial institutions and regulation.
A draft budget presented in November forecasts economic growth of 4.5% this year, up from almost zero last year and 3.7% in 2010.
"The gross domestic product will grow but not be as strong as we had expected but it is recovering and should be around 3% to 4% this year, up from a negative growth of 1.8% last year," Nabil said.
Inflation will remain under control and hover around 3.5% this year, compared to 4.5% last year, he added.
-By Summer Said, Dow Jones Newswires, +966 546 842 373;
summer.said@dowjones.com
(END) Dow Jones Newswires
28-01-12 1119GMT
