Tunisia Engages in Talks with Saudi Arabia and the UAE for Financial Support

A senior official at the Central Bank of Tunisia disclosed that the country is in advanced discussions with both Saudi Arabia and the UAE to obtain funding to support the public budget. Abdel Karim Lassoud, head of the General Directorate of Financing and External Payments at the Central Bank of Tunisia, stated in a phone interview that an agreement may soon be reached with the two countries, although he did not provide details regarding the size of the assistance being discussed. Tunisia has been facing long-standing economic issues and has plunged into new political turmoil since late July when President Kais Saied suspended parliament and assumed greater powers. The Central Bank has recently expressed concern about the "severe" shortage of foreign currency resources and the rising public debt. Lassoud also mentioned that the Central Bank and the Ministry of Finance recently held discussions with the International Monetary Fund regarding potential economic reforms, adding that the government needs to reach an agreement with labor unions and major business leaders on the steps to be taken in order to implement them as quickly as possible.