Tunisia turns to its central bank to shore up its budget deficit

By BOUAZZA BEN BOUAZZA and SAM METZ
Associated Press

TUNIS, Tunisia (AP) — Cash-strapped Tunisia wants to borrow billions from its central bank to shore up budget deficits and bandage its ongoing economic crisis. The North African country’s parliament on Wednesday mulled a request from President Kais Saied’s government to borrow funds after it previously overhauled laws designed to guarantee the bank’s independence. But in Tunisia, the request is raising concerns about undermining the bank’s independence, causing inflation and further spooking foreign lenders and investors. Such risks could further destabilize the economy, which has already been plagued by inflation and shortages.