Tunisia is at Risk of Bankruptcy Due to Financial Difficulties $ Corona Repercussions

  • Tunis, Republic of Tunisia
  • 24 July 2020

The resigned Tunisian Prime Minister, Elyes Fakhfakh, warned that Tunisia is threatened with bankruptcy and the inability to pay the salaries of public sector employees, due to public financial difficulties, the effects of the Corona pandemic, and the political crisis, pointing out that the country is facing an unprecedented financial crisis, describing the situation as "frightening", pointing out that political disputes would strengthen this crisis.

Fakhfakh indicated that government companies would reach the stage of total paralysis and stop work soon, stressing the need of the state’s treasury to be about 16 billion dinars, including 5 billion dinars to provide wages and disposal expenses.

Fakhfakh described the country's economic situation as "very difficult", saying that the political crisis would increase the economic difficulties after the Corona pandemic left a budget gap of 5 billion dinars, as a result of declining fiscal revenues and the stoppage of work.

He also stressed that all economic indicators in the red region, warning of Tunisia's loss of its sovereign decision due to the rise of external debt to more than 60% of GDP, as well as the rise of the country's public debt to 80%.

Source (New Arab newspaper, Edited)