Banking in Tunisia
Tunisia is known for economic and political stability, its highly educated workforce, while Islamic radicalism is weak. Tunisia does not have the resource curse of oil or mineral deposits that often determine instability. From 2000 to 2009, Tunisia grew at an annual rate of 5.2% and its per capita income of about $8,300 (in PPP terms) in 2009 was second only to Lebanon among the oil-importing MENA countries. The stability of the Tunisian Dinar and historically low inflation in Tunisia are positive indicators for its potential development of financial services. Inflation was 4.9% in FY 2007-08 and 3.5% in FY 2008-09. The Tunisian Dinar was less volatile in 2000-2010 than the currencies of its oil-importing neighbors, Egypt and Morocco.
Tunisian bread riots
The European economy in 1983 had been stagnant for some years. This had affected Tunisia since its economy relied on exports to Europe and tourists from Europe. The government was struggling to meet rising expenses when a fall in the price of oil towards the end of 1983 further reduced revenue. President Bourguiba agreed to seek a loan from the International Monetary Fund (IMF). The IMF loan was conditional on government spending cuts, removal of exchange controls, elimination of protective tariffs and devaluation of the currency.