Tunisia’s political crisis, Kuwait debt, GERD, OPEC+

Political turmoil in Tunisia this week culminated in Prime Minister Elyes Fakhfakh’s resignation, which will ultimately hold up efforts to secure a new IMF deal and raises the risk of a sovereign debt crisis further down the line. Kuwait’s government moved a step closer to passing a new debt law that would open the door to international bond markets. This would make it easier to finance the budget deficit but is unlikely to prompt the government to row back on austerity. Elsewhere, the spat between Egypt and Ethiopia over the Grand Ethiopian Renaissance Dam has intensified and OPEC+ finalised its plans to pare back oil output cuts from next month.