The World Bank has approved a new $500 million loan to support economic reforms in Tunisia, the state news agency said.
The loan is aimed at promoting private investment and creating opportunities for small businesses, while protecting vulnerable households and increasing energy security, TAP news agency said.
Tunisian Ministry of Development, Investment and International Cooperation indicated that the projects to be funded by the World Bank in Tunisia include a number of programs in the energy, water and technology sectors, and support for private initiative and infrastructure.
These funds are determined by the progress of the economic reforms adopted by Tunisia, which are almost the same as those required by the International Monetary Fund (IMF) to continue financing the Tunisian economy.
The World Bank supports establishing a forum to invest in major projects and the public-private partnership to be held at the end of June in Tunisia.
The public-private partnership forum aims at stimulating investment and creating economic recovery and achieving a growth rate capable of absorbing the growing number of unemployed, and bringing development indicators closer together.
International financial institutions rely on the same indicators in determining to grant loans to economies. They also consider the countries’ implementation of reforms with the primary objective of getting out of the crisis and providing the financial returns that will guarantee their repayment of the loans they have provided, according to Tunisian economist Saad Boumakhala.
In the case of Tunisia, the World Bank only granted this deferred loan after several IMF delegations presented positive reports confirming the Tunisian authorities' implementation of major economic reforms.
These international institutions may refrain from providing financial support to the Tunisian economy, if the agreed recommendations were no longer pursued locally.
The World Bank has agreed with the Tunisian authorities to implement a program of financial cooperation between in 2018 and 2019. The program included a number of development projects in a number of vital areas, as well as a program to support the Tunisian budget.
Over the next five years, the World Bank is expected to fund a project aimed at improving environmental conditions through the extension of sanitation channels in a number of areas located in districts north of the Tunisian capital and in a number of southern Tunisian areas.
These projects are part of the $350 million financial support provided by the World Bank to the Tunisian state to finance development projects in the regions. About $60 million of the fund will be allocated to the implementation of youth employment projects in marginalized and least developed areas on the development index.
