All these factors impacted the financial resources, making borrowing the only option.
Unemployment rates went from 15 percent in 2019 to 18 percent. This puts Tunisia in front of new economic challenges.
Economic activity was estimated to have shrank 21 percent in the past two months, while debt exceeded 70 percent of the GDP.
Many economists believe that odds are high that the Tunisian economy recovers in the coming two years and exit the bottleneck.
The Tunisian government is in dispute with the Central Bank that joined the parliament in calling on the Ministry of Finance to revise the auxiliary financial law. This law was supposed to fill a gap of at least TND14 billion (USD5 billion approximately).
The Central Bank also rejected domestic funding of the Tunisia economy by buying bonds to fund the budget.