Tunisian finance minister urges G-20 countries to ease loan conditions


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TUNIS – The Tunisian Minister of Economy, Finance and Investment has called on creditor countries to consider easing loan conditions, as the pandemic has made it difficult for debtor countries to repay loans.

Ali Kooli told Nikkei in an interview that “the decision of the Group of 20 countries to support low-income countries and try to offset part of their loans is a very good decision.” But, he added, “we must not forget the middle-income countries, like Tunisia”.

In November, the G-20 agreed on a framework to support the poorest debtor countries affected by COVID-19.

Slowing economies are seeing their tax revenues shrink as tax expansion to support hard-hit businesses has strained government budgets around the world. Kooli said Tunisia’s sovereign debt could reach 85% of gross domestic product by the end of the year, up from 72% in 2019.

He denied he could ask for debt restructuring, but called on creditor countries to be flexible. “I wouldn’t talk about debt compensation, but [would like them] to rethink the amounts, and the [length] should be something we should consider, “Kooli said.” All of these middle income countries need to reshape their economies. “

Tunisia is in talks with the International Monetary Fund for financial assistance, according to Kooli. To clean up Tunisia’s budget, he suggested reforming public enterprises and subsidies.

The minister expressed hope that the Chinese-led Asian Infrastructure Investment Bank will play a role in promoting his country’s cooperation with Asian countries. “[The AIIB] could be a very good tool to promote relations between our country and Asia, “he said, adding that the bank has developed” real know-how “in the field of infrastructure and project finance. Tunisia joined the AIIB in 2019.

Tunisia’s GDP per capita is around $ 3,300, according to the IMF. A key issue for the country, which has neither oil nor gas, is to promote investment and create jobs.

Kooli called on Asian countries to invest in Tunisia, either directly or through bonds. Asked whether the country would issue Japanese Yen sovereign bonds, or samurai bonds, he was cautious and said, “We still have other options that we can look at on a case-by-case basis.” .

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