Tunisia-Monthly climb in fuel prices among repercussions of Tunisia’s sovereign rating downgrade [Audio]

Economist Ridha Chkoundali declared today that Tunisia’s sovereign rating downgrade will further complicate the economic and financial situation in the nation. “Tunisia may be incapable to locate an international creditor to acquire credit. In this case, the authorities will have to resort to the Central Bank to finance State resources,” he clarified, revealing that the country recorded a budget deficit of 4 billion dinars.

” The Russian invasion in Ukraine was the cause of the growth in the price of the barrel assessed at 120 dollars. Any boost in the price of a barrel will cost the State losses of 129 million dinars, i.e. a deficit of 5 billion dinars more. This decline could be the reason for a monthly increase in the price of fuel and thus an increase impacting several products. And to add that the rise in cereal prices on an international scale will have bad consequences” adds our speaker.

Chkoundali emphasised that the drop in Tunisia’s sovereign rating will complicate negotiations with the IMF, recollecting that the deficit noted in the 2022 finance law is estimated at 20 billion dinars, i.e. half of the Tunisian state budget. In case the deal with the IMF has not taken place, we will face a surge in prices like in Lebanon and the situation will spiral out of control, according to Chkoudali.