Tunisia has striven to push through reforms needed to secure the fourth tranche of a $2.9bn credit line from the IMF. But political risks further may be lifting after January 2018’s unrest.
Economic risk (MEDIUM): Economic activity is picking up, but the Tunisian economy faces key challenges to maintain an acceleration in growth.
Political risk (HIGH): The break-up of the alliance between the ruling party and moderate Islamists threat- ens to revive political divisions. The return of British tourists is positive.
Financial risk (MEDIUM): The adoption of new banking sector legislation, especially in bankruptcy and central bank governance, and business plans for public banks will enhance the sector’s ability to tackle high non-performing loans.
Commercial risk (MEDIUM): Tunisia is still ranked highly within the region in terms of the ease of doing busi- ness. The World Bank has given a $500m loan to support the business environment.