While Tunisia's government managed to avert default this week by meeting a Eurobond repayment, it only did so by draining already low FX reserves. With the new central bank governor set to take further steps toward deficit monetisation, this will only put Tunisia further along the path towards a messy crisis. Elsewhere, Egypt’s new Unified Budget Act will increase the transparency surrounding the large number of state bodies and, coming alongside efforts to extend the average maturity of government debt, represents another box ticked ahead of getting a new IMF deal.
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