The outlook for the Tunisian banking system has been upgraded from negative to stable, according to a new rating by Moody’s, as reported by the Tunisian press on Thursday.
“This outlook is based on the government’s demonstrated ability to meet its debt repayment commitments and the reduced risk of a sovereign credit event,” Moody’s explained.
On the other hand, it was cautious about the country’s economic context, particularly with regard to weak economic growth and fiscal and trade balances.
“Weak economic growth, large fiscal and external imbalances, relatively high financial stress and banks’ high exposure to sovereign debt will continue to limit improvement in creditworthiness and liquidity over the next 12 to 18 months”, Moody’s said.
Tunisia has, however, shown respectable resilience, particularly in terms of payment of its external debt, which has earned it a degree of confidence from lenders and partners.
Today, the Central Bank of Tunisia has sufficient foreign currency reserves to cover 101 days of imports.
TunisianMonitorOnline (NejiMed)
