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New PRO Memo: Tunisia’s potential IMF deal to boost manufacturing investments

The loan could provide much-needed economic balance for Tunisian manufacturers.
Cranes and containers are pictured on November 12, 2014, in the Tunisian port city of Rades. The World Bank said in a report published last September that Tunisia's economic model of manufacturing for exports and protecting the domestic market was valid in the 1970s but since then had hindered progress. AFP PHOTO / FETHI BELAID (Photo credit should read FETHI BELAID/AFP via Getty Images)

The past decade has been hard on Tunisian industry. Political instability weakened sectoral policy, regular labor stoppages drove down output, and security concerns discouraged foreign and domestic investors from expanding.

But a potential $1.9 billion loan from the International Monetary Fund would be a huge boost to Tunisia's manufacturing industry. In his latest memo, Francisco Serrano explains how.

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