UGTT and UTICA express concern over downgrading of Tunisia’s sovereign rating
24/02/2021 17:23, TUNIS/Tunisia

(TAP)- The Tunisian General Labour Union (UGTT) and the Tunisian Confederation of Industry, Trade and Handicrafts (UTICA), Wednesday, expressed concern over the further downgrading of Tunisia's sovereign rating by Moody's and its repercussions on the national economy.

They said they were "ready" to use every available means to find a way out of the current political crisis.

In a joint statement, the two organisations noted that the current political and constitutional crisis that has persisted for a month is behind the downgrading of Tunisia's rating from B2 to B3 by Moody's.

"This downgrade will have serious consequences on the national economy and could prevent Tunisia from honoring its financial commitments," the labour union and employers’ organisation warned.

The two organisations urged ending the political crisis and accelerating the installation of constitutional institutions, including the Constitutional Court by putting aside political tensions and narrow partisan interests.

It is imperative, according to them, "to combine more efforts to save the national economy, to help small and medium enterprises and workers whose situation has further deteriorated as a result of the health crisis".

They, in this vein, urged the government to accelerate the acquisition of the COVID-19 vaccine, which remains the only way to revive the national economy.

Rating agency Moody', on Tuesday evening, downgraded from B2 to B3 the long-term-foreign- currency and local-currency issuer rating of Tunisia and maintained the negative outlook.

Moody’s also downgraded the Central Bank of Tunisia's senior unsecured rating to B3 from B2 and maintained the negative outlook.

The agency said in a statement the downgrade to B3 of Tunisia's sovereign rating "reflects the weakening of governance in the face of rising social constraints that increasingly inhibit the government's flexibility to implement fiscal adjustment and public sector reforms.”

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