VZCZCXRO2740
PP RUEHTRO
DE RUEHTU #0602/01 1580616
ZNR UUUUU ZZH
P 060616Z JUN 08
FM AMEMBASSY TUNIS
TO RUEHC/SECSTATE WASHDC PRIORITY 5104
INFO RUEHAS/AMEMBASSY ALGIERS PRIORITY 7684
RUEHLO/AMEMBASSY LONDON PRIORITY 1462
RUEHNK/AMEMBASSY NOUAKCHOTT PRIORITY 0999
RUEHFR/AMEMBASSY PARIS PRIORITY 1927
RUEHRB/AMEMBASSY RABAT PRIORITY 8557
RUEHTRO/AMEMBASSY TRIPOLI PRIORITY 0241
RUEHCL/AMCONSUL CASABLANCA PRIORITY 4230
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 TUNIS 000602 
 
SIPDIS 
 
STATE FOR NEA/MAG (HARRIS) 
STATE PASS USTR (BURKHEAD) 
USDOC FOR ITA/MAC/ONE (NATHAN MASON), ADVOCACY CTR (REITZE), AND 
CLDP (TEJTEL) 
CASABLANCA FOR FCS (ORTIZ) 
LONDON AND PARIS FOR NEA WATCHER 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EAIR EFIN BEXP ENRG TS
SUBJECT: TUNISIA ECONOMIC HIGHLIGHTS 
 
 
¶1. (U) This cable contains highlights of recent economic 
developments in Tunisia on the following topics: 
 
¶A. Central Bank Raises Reserve Requirement 
¶B. EIB Loans Tunisia 260 Million Euros 
¶C. GOT Adopts New Customs Code 
¶D. GOT Forecasts Growing Budget Deficit and Inflation 
¶E. Karthago Airlines to Delist and Merge with Nouvelair 
 
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Central Bank Raises Reserve Requirement 
--------------------------------------- 
 
¶2. (U) On May 27, Tunisia's Central Bank (BCT) raised bank reserve 
requirements to 7.5 percent in order to absorb liquidity and stem 
inflation.  The Central Bank had already raised the reserve 
requirement to 5 percent in January from 3.5 percent.  The benchmark 
interest rate remained unchanged at 5.25 percent.  The Central Bank 
stated it was raising reserve requirements to reduce surplus 
liquidity and limit consumer credit, which can drive the rate of 
inflation.  The consumer price index climbed to 6 percent 
year-on-year in April, up from 5.9 percent in March. 
 
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EIB Loans Tunisia 260 Million Euros 
----------------------------------- 
 
¶3. (U) On May 16, the European Investment Bank (EIB) granted a loan 
of 200 million euros to Tunisia to be disbursed to small and 
medium-size enterprises (SMEs).  The EIB announced the credits would 
be granted to SMEs through five Tunisian banks: Amen Bank, Arab 
Tunisian Bank, Banque de l'Habitat, Banque Internationale Arabe de 
Tunisie, and l'Union Bancaire pour le Commerce et l'Industrie.  The 
EIB also granted a loan of 60 million euros to Tunisian state-owned 
Electricity and Gas Company (STEG) to support the development of 
Tunisia's natural gas network.  According to the EIB, this loan aims 
to reduce oil imports by encouraging commercial and household 
natural gas connections.  The EIB holds nearly eight percent of 
Tunisia's external debt; much of this funding is designed to support 
implementation of Tunisia's Association Agreement with the European 
Union. 
 
--------------------------- 
GOT Adopts New Customs Code 
--------------------------------- 
 
¶4. (U) On May 13, the Tunisian Parliament adopted a new Customs 
Code, which will go into effect January 1, 2009. According to the 
Minister of Finance Mohamed Rachid Kechiche, the new code was 
necessary to adapt customs services to current national economic 
needs.  Kechiche explained that code has three objectives: saving 
time and money for companies during customs clearance, reinforcing 
transparency in dispute resolution, and bringing Tunisian customs 
legislation into compliance with international agreements. 
Additionally, Kechiche announced that the GOT is currently working 
on legislation that will improve enforcement and limit importation 
to the black market.  A GOT Customs official told Econoff that the 
new code represents a major shift in emphasis away from control and 
towards facilitating trade.  He added that the code will also 
facilitate Customs officials' efforts to enforce intellectual 
property rights by expanding seizure authority (NFI). 
 
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GOT Forecasts Growing Budget Deficit and Inflation 
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