Members of the Assembly of People’s Representatives (ARP) adopted at a plenary session on Tuesday evening the draw law that exceptionally authorises the BCT to grant facilities worth TND 7 billion to the General Treasury of Tunisia.
The new law was adopted with 92 votes in favour, 15 against and 26 abstentions.
Responding to MPs, Finance Minister Sihem Boughdiri Nemsia said “the bill will allow the government to raise the necessary funds to meet the urgent financial needs of the state”.
She pointed out that the financing needs for the first quarter of 2024 alone amount to TND 15.6 billion, which will be used in particular for the repayment of domestic and foreign debt (7 billion dinars), the payment of salaries (TND 2.7 billion), investments (TND 1 billion), the financing of expenditures of public enterprises (TND 1.8 billion) and hydrocarbon subsidies (TND 1 billion).
She added that the State’s own resources are not sufficient to cover all these expenditures, which is why it is necessary to have recourse
to the BCT on an exceptional basis to cover these needs, part of which will be used to stimulate investment and economic growth.
Nemsia also reassured her audience that this measure would not have a major impact on inflation, money supply or the exchange rate, as the amount recovered by the BCT would not only be used to finance consumer spending, but also to boost investment and wealth creation in the country.
For the Finance Minister, the amount of these facilities has been carefully studied so that it will have only a relative impact on inflation and will in no way contribute to an increase in the money supply.
Unlike the facilities granted by the BCT in 2020, those granted this year will be used in part to finance investment and development, in addition to the repayment of the 3-billion-dinar bond loan contracted in 2017, as part of the continuity of the state, she said.
«Tunisia has never been late in repaying its debts and any rescheduling would be a form of recognition of the difficulties that may u
ndermine the country’s image and credibility,» she added.
Despite criticism and attempts to cast doubt on the country’s ability to repay its debts in 2023, the government has honoured all its commitments in this area, while working to reduce the trade deficit and consolidate public enterprises, prompting the IMF Managing Director and a senior European Commission official to welcome the resilience of the Tunisian economy.
Source: Agence Tunis Afrique Presse