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Tunisia: political turmoil further raises debt risks

The decision by Tunisia’s President Kais Saied to sack the prime minister and freeze parliament has raised serious concerns about the future of democracy in the country and couldn’t come at a worse time for the economy, which is already reeling from the effects of the pandemic. Whichever way events unfold over the coming days and weeks, the likelihood of a sovereign debt restructuring – which we have warned about for some time – has increased even further.

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