UPDATE 1-Tunisian banks agree 250 mln euro syndicated loan for the government

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TUNIS, Feb 5 (Reuters) – Tunisian banks have agreed a 250 million euro syndicated loan to be used by the government to finance the 2021 budget, a senior official told Reuters on Friday.

Tunisia’s 2021 budget forecasts borrowing needs at 19.5 billion dinars($7.2 billion), including about $5 billion in foreign loans and $2.2 billion from the local market.

It puts debt repayments due this year at 16 billion dinars, up from 11 billion dinars in 2020.

Tunisia faces unprecedented economic hardship with a fiscal deficit of 11.5% of GDP in 2020, the highest in nearly four decades.

The 2021 budget aims to cut the fiscal deficit to 6.6 pct.

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