IMF approves $745 million loan for Tunisia to fight COVID-19

The International Monetary Fund (IMF) recently announced the approval of a 745-million-dollar loan to help Tunisia cope with the economic fallout of the coronavirus pandemic.

Mitsuhiro Furusawa, the IMF deputy managing director said in a statement that, “The COVID-19 pandemic has hit Tunisia hard and will worsen the country’s already elevated macroeconomic imbalances and will also create urgent fiscal and balance of payment needs.”

According to the IMF, the North African country’s economy is expected to contract by 4.3 percent in 2020, in what is speculated to be the worst recession since the country’s independence in 1956.

This is the first IMF emergency financing to the Middle East and North Africa region.

The monies are meant to help Tunisia “contain the spread of the virus and mitigate its human, social, and economic toll amid unprecedented uncertainty.”

The IMF said the loan will be used to increase health spending, strengthen social safety nets, and support Tunisian businesses.