Saudi Arabia lends Tunisia $200m to finance import of Saudi oil derivatives

Saudi Arabia provided Tunisia $200 million in form of credit line to finance the import of Saudi oil byproducts, Tunisian Economy ministry has said.

The North African country is grappling with difficult economic situation compounded by the ongoing pandemic that has battered several sectors including tourism; the second biggest contributor of the Gross Domestic Product (GDP).

The government late last month adopted the 2022 budget short of around $2.8 billion. The draft puts the national budget for this year at TD47.166 billion (around $16.4 billion).

The government’s resources stand at TD38.6 billion, , Zawya reports, citing a leaked document.

The Gulf country is willing to back the budget but provided that the North African country meets the demands of the International Monetary Fund (IMF) for a restructuring plan.

The kingdom is reportedly keen to lend Tunisia $500 million to surf economic hardship.

The North African country is also in talk with IMF for a financial facility.

Aside from the kingdom, Libya and Algeria promised to back up the Tunisian 2022 budget respectively with $500 million and $300 million. However, Algeria has reportedly backtracked on its promise, being itself engulfed in a serious economic crisis.

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