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Tunisia to issue ‎€1bn Eurobond in January: government source

Tunisia is seeking funding to cover its deficit

* Issue was delayed after the country secured $500m sovereign bond fully guaranteed by US

* The North African country recently cut its 2016 growth forecast to 1.5 per cent

 

Tunisia plans to issue a Eurobond worth ‎€1 billion in January as it seeks funding to cover its deficit, a government source said on Monday.

 

(New premier tries to break economic reform curse)

 

Delays

The issue was initially scheduled for April, but that was delayed after the country secured a $500 million sovereign bond fully guaranteed by the United States, said the official.

“Tunisia will issue in January 2017 a delayed €1bn Eurobond that was first planned earlier this year,” he said, without giving further details.

 

(Reforms backed by international aid to make way for Tunisia’s revival)

 

Social unrest

Tunisia’s economy has been hit by social unrest and militant attacks following the 2011 uprising that toppled former leader Zine El-Abidine Ben Ali. Investment has fallen and unemployment is high, especially among young people.

 

(Qatar tops Arab investors in Tunisia)

 

The government is facing further strikes over austerity measures included in the 2017 budget as it tries to cut public spending and rein in the deficit.

Tunisia recently cut its 2016 growth forecast to 1.5 per cent this year, down from an expected 2.5 per cent.