Loan fast-tracked to compensate for economic impact of terrorism
- The Washington-based World Bank extends $500m loan to Tunisia
- The loan is to support economic reforms as Tunisia copes with the economic fallout of terrorist attacks
The Washington-based World Bank has extended Tunisia a $500m governance, opportunity and jobs development policy loan.
The third and final tranche in the programme has been brought forward to help Tunisia cope with the economic impacts of two terrorism attacks targeting foreign tourists in the country.
The loans are intended to support Tunisia through its post 2011 revolution transition and reform process. This involves improving the business climate, restructuring the financial sector, and improving government transparency and accountability.
The measures include restructuring state-owned banks, reducing bureaucratic procedures and investment in the telecommunications sector to drive job creation.
The announcement follows the release of a $302m loan by the Washington-based International Monetary Fund, which will be used for similar purposes.
As Tunisia moves beyond the political transition, speeding up the pace of economic reforms will be critical to guarantee stability and further progress, said Eileen Murray, World Bank country manager for Tunisia, in a press release.
This operation is part of a package of international support designed to help Tunisia maintain the momentum on critical economic reforms. It was prepared in close consultation with the African Development Bank, the European Union and the International Monetary Fund.
The World Bank is now developing a new, five-year strategy for Tunisia.
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