The Arab Monetary Fund (AMF) is keen to support the efforts of its member countries to implement economic, financial and structural reforms, in face of various challenges, through a number of means, including financing the needs of the balance of payments and public budgets, and financing trade through its affiliate the Arab Trade Financing Program, in addition to its role in promoting policy dialogue and consultation on economic, financial and development issues via its various forums and activities, providing technical advice to member countries in the field of economic, fiscal and financial policies, and providing training for government officials in member countries through its Institute for Training and Capacity Building.
The AMF is also keen to provide financial and technical support to its member countries during this period in particular, in light of the developments taking place due to the COVID-19, and the ensuing economic and financial repercussions in different aspects. The AMF assistance in this regard comes as a support to the reform efforts of member countries and the measures they are taking to stimulate the economy and provide liquidity in order to contain the negative effects of the virus outbreak.
In this context, the AMF extended a new Compensatory Loan to the Republic of Tunisia, with the amount of Arab Accounting Dinar 19.175 million, the equivalent of approximately USD 82 million. The agreement was signed on Wednesday, 28th July, 2021, by HE Dr. Marouane El Abassi, Governor and Chairman of the Executive Board of the Central Bank of Tunisia, on behalf of the Republic of Tunisia, and HE Dr. Abdulrahman A. Al Hamidy, Director General Chairman of the Board of Executive Directors of the AMF, on behalf of the AMF, with the aim to provide financial support to strengthen the country’s financial position and meet emergency needs.
The AMF follows closely the developments of the Tunisian economy and the challenges it faces due to the current circumstances and works through a fruitful partnership with the Tunisian government to help the country contain the different challenges in the most effective way.
In this respect, the AMF has finalized the procedures to withdraw the second tranche of the existing loan to the Republic of Tunisia, to support a reform program in the financial and banking sector. The mentioned tranche is of the value of Arab Accounting Dinar 9.588 million, the equivalent of approximately USD 41 million, withdrawn on 15th July 2021.
The AMF is currently studying financing requests from other member countries, and is processing the requests through expeditious procedures, in order to provide support as quickly as possible, so that the borrowing member countries can meet financing needs and enhance their financial positions to face various challenges, especially in such times.