PHOTO
TUNIS:Tunisia's parliament on Tuesday approved a plan by the central bank to sell bonds worth $1 billion to help finance the 2018 budget, the state news agency said.
The finance ministry directed the central bank after the approval by parliament's financial committee to issue the bonds in the second half of March, the agency said.
The North African country previously said it needed $3 billion ($14.7 billion) in loans next year to finance its budget of 36 billion dinar in 2018.
It forecasts the budget deficit to fall to 4.9 percent of gross domestic product in 2018, from about 6 percent expected in 2017. Tunisia aims to raise GDP growth to about 3 percent next year from 2.3 percent this year.
Tunisia is under pressure from the International Monetary Fund to speed up policy changes and help its economy recover from militant attacks in 2015 that hurt its vital tourism industry.
The country has been praised as the only democratic success among the nations where "Arab Spring" revolts took place in 2011. But successive governments have failed to make the changes needed to trim deficits and create growth.
Protest against tax and price increases had erupted this month. They have abated but social tensions simmer as Tunisia is locked in an economic crisis.
Tunisia had decided after the outbreak of protests to increase support for poor families and needy people by some $70 million.
($1 = 2.4 Tunisian dinars)
(Reporting by Tarek Amara; Writing by Ulf Laessing; Editing by Matthew Mpoke Bigg) ((matt.bigg@thomsonreuters.com; +44 20 7250-1122 ;))
The finance ministry directed the central bank after the approval by parliament's financial committee to issue the bonds in the second half of March, the agency said.
The North African country previously said it needed $3 billion ($14.7 billion) in loans next year to finance its budget of 36 billion dinar in 2018.
It forecasts the budget deficit to fall to 4.9 percent of gross domestic product in 2018, from about 6 percent expected in 2017. Tunisia aims to raise GDP growth to about 3 percent next year from 2.3 percent this year.
Tunisia is under pressure from the International Monetary Fund to speed up policy changes and help its economy recover from militant attacks in 2015 that hurt its vital tourism industry.
The country has been praised as the only democratic success among the nations where "Arab Spring" revolts took place in 2011. But successive governments have failed to make the changes needed to trim deficits and create growth.
Protest against tax and price increases had erupted this month. They have abated but social tensions simmer as Tunisia is locked in an economic crisis.
Tunisia had decided after the outbreak of protests to increase support for poor families and needy people by some $70 million.
($1 = 2.4 Tunisian dinars)
(Reporting by Tarek Amara; Writing by Ulf Laessing; Editing by Matthew Mpoke Bigg) ((matt.bigg@thomsonreuters.com; +44 20 7250-1122 ;))
