Economy

Tunisia-Ridha Chakandali calls for caution against excessive borrowing from Central Bank [Video]

Speaking to Tunisie Numérique, economic expert Ridha Chakandali advised that the proposal presented to Parliament regarding the state’s direct borrowing from the Central Bank should not surpass 2.8 billion dinars. He stressed the significance of this limit, particularly considering Tunisia is obliged to repay a loan of about 850 million euros on the international financial market, a debt originating from the Chahed government in 2020.

He underlined the risks of exceeding this figure, equal to 14 days of supply. He cautioned that aiming for a sum of approximately 7 billion dinars, representing 23 days of supply, could negatively impact the availability of basic and essential materials, leading to economic growth reduction, increased unemployment, and higher economic inflation rates.

He urged caution against excessive borrowing from the Central Bank due to its possible devaluation effect on the Tunisian dinar. He described resorting to Central Bank loans to bridge the state budget’s financial gap as an accounting measure with adverse effects.