World Bank Agrees to New Partnership with Tunisia

The World Bank agreed to a new partnership with the Tunisian government, as concerns grow about the country's finances, according to Bloomberg.

The World Bank said in an emailed comment to Bloomberg that the decision on the Partnership Framework - which sets out "strategic directions for operational commitments" from 2023 to 2027 - would be submitted for approval by the lender's board within weeks.

“The government and the World Bank Group have reviewed and amended the strategy, which will now serve as the basis for the World Bank Group continuing to play its role as a long-term partner to the country and its people,” according to the lender.

These promises are progress needed by Tunisia's treasury and the country's debt holders, which are under pressure. Although Tunisia also reached an expert-level agreement with the International Monetary Fund in October, the deal is still awaiting review and approval by the board.

The size of the Tunisian economy is $50 billion; and has an urgent need to secure support from abroad grows as the country faces new and severe shortages of bread and fuel. Living standards for most of Tunisia's 12m population have already fallen since 2011, when it helped spark the Arab Spring revolutions.

The World Bank's vice president for the Middle East and North Africa said in an interview last month that the lender is considering programs worth about $500 million for Tunisia for the fiscal year ending in June.

The "urgent priorities" of the new World Bank partnership program include direct support to the most affected households, and ensuring access to financing for small and medium enterprises, according to the lender.