Tunisia obtains loans from banks and multilateral agencies

By Marc Castro

Jun 14, 2013 11:34 AM EDT

Tunisia has just been approved for a US$1.2 billion funding facility from the Islamic Development Bank. The Saudi based financial institution is seeking to assist in the development of industrial, agricultural and other trade projects in countries with financial systems still reeling from the upheavals from two years ago.

The said funds would come in the form of loans and grants according to the Tunisian prime minister through a statement issued Friday. The term of the funding would be for three years with disbursements in tranches worth US$400 million each year ending in 2015.

Tunisia similarly was able to negotiate a US$1.7  billion standby loan from the International Monetary Fund. This would be utilized as it curbs rising inflation, a large external deficit and an embattled political future.

In the same statement, Prime Minister Ali Larayedh said that his government is in discussion with the kingdom of Qatar for deposits with easy conditions in the central bank of Tunisia. Furthermore, IDB had provided the country a guarantee to issue a sukuk bond worth US$600 million before 2014.

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