Obbligazione Tunisia 2.5% ( XS0773212179 ) in USD

Emittente Tunisia
Prezzo di mercato 100 USD  ▲ 
Paese  Tunisia
Codice isin  XS0773212179 ( in USD )
Tasso d'interesse 2.5% per anno ( pagato 2 volte l'anno)
Scadenza 18/04/2017 - Obbligazione è scaduto



Prospetto opuscolo dell'obbligazione Tunisia XS0773212179 in USD 2.5%, scaduta


Importo minimo 200 000 USD
Importo totale 500 000 000 USD
Descrizione dettagliata La Tunisia è una repubblica presidenziale del Nord Africa, caratterizzata da una storia antica, un clima mediterraneo e un'economia basata sul turismo, sull'agricoltura e sulle industrie manifatturiere.

The Obbligazione issued by Tunisia ( Tunisia ) , in USD, with the ISIN code XS0773212179, pays a coupon of 2.5% per year.
The coupons are paid 2 times per year and the Obbligazione maturity is 18/04/2017







PROSPECTUS
BANQUE CENTRALE DE TUNISIE
acting on behalf of
THE REPUBLIC OF TUNISIA
U.S.$500,000,000 2.50% Notes due 2017
Issue Price: 100%
The U.S.$500,000,000 2.50% notes due 2017 (the "Notes") are being issued by Banque Centrale de
Tunisie (the "Bank") acting on behalf of The Republic of Tunisia. The Bank will pay interest on the Notes
annually in arrear on 18 April in each year, commencing on 18 April 2013. Payments on the Notes will be made
without deduction for or on account of taxes imposed by The Republic of Tunisia or any political subdivision
thereof or any authority therein or thereof having power to tax, to the extent described under "Terms and
Conditions of the Notes -- Taxation".
The Notes mature on 18 April 2017. The Notes will constitute unsecured obligations of The Republic
of Tunisia and shall at all times rank pari passu and without any preference amongst themselves. See "Terms
and Conditions of the Notes -- Status".
The Commission de Surveillance du Secteur Financier (the "CSSF") in its capacity as competent
authority under the Luxembourg Act dated 10 July 2005 (the "Luxembourg Act") relating to prospectuses for
securities has approved this Prospectus for the purposes of Directive 2003/71/EC, as amended by Directive
2010/73/EU (the "Prospectus Directive"), and application has been made to the Luxembourg Stock Exchange
(the "LSE") to admit the Notes to the official list of the LSE (the "Official List") for trading on the LSE's
regulated market. The CSSF gives no undertaking as to the economic or financial opportuneness of the
transaction or the quality and solvency of The Republic of Tunisia in line with the provisions of article 7(7) of
the Luxembourg Act. References in this Prospectus to the Notes being "listed" (and all related references) shall
mean that the Notes have been admitted to the Official List and admitted to trading on the LSE's regulated
market. The LSE's regulated market is a regulated market for the purposes of Directive 2004/39/EC of the
European Parliament and of the Council on markets in financial instruments.
The Notes have not been and will not be registered under the United States Securities Act of
1933, as amended (the "Securities Act") and, subject to ce
1933, as am
rtain exceptions, may not be offered or sold
within the United States.
The Notes are being issued in minimum denominations of U.S.$200,000 and integral multiples of
U.S.$1,000 in excess thereof. Notes will be represented by beneficial interests in a global note (the "Global
Certificate") in registered form without interest coupons attached, which will be registered in the name of a
nominee for, and w
nom
ill be deposited on 18 April 2012 with a common depositary for, and in respect of interests
inee for, and w
held through, Euroclear Bank S.A./N.V. ("Euroclear") and Clearstream Banking, société anonyme
("Clearstream, Luxembourg"). Beneficial interests in the Global Certificate will be shown on, and transfers
thereof will be effected only through, records maintained by Euroclear and Clearstream, Luxembourg and their
participants. Except as set out in "Summary of Provisions relating to the Notes while in Global Form",
certificates will not be issued in exchange for beneficial interests in the Global Certificate.
INVESTING IN THE NOTES INVOLVES RISKS. SEE ''RISK FACTORS" FOR A
DISCUSSION OF CERTAIN FACTORS TO BE CONSIDERED IN CONNECTION WITH AN
INVESTMENT IN THE NOTES.
JOINT LEAD MANAGERS
QNB Capital
Standard Chartered Bank
Prospectus dated 16 April 2012


IMPORTANT NOTICES
This document comprises a prospectus for the purposes of Article 5.3 of the
Prospectus Directive and for the purposes of the Luxembourg Act.
References in this Prospectus to the "Issuer" are to the Bank acting on behalf of the
Republic of Tunisia for the purposes of issuing the Notes as described in this Prospectus.
The Issuer accepts responsibility for the information contained in this Prospectus. To
the best of the knowledge and belief of the Issuer (having taken all reasonable care to ensure
that such is the case) the information contained in this Prospectus is in accordance with the
facts and does not omit anything likely to affect the import and completeness of such
information.
This Prospectus does not constitute an offer of, or an invitation by or on behalf of the
Bank, The Republic of Tunisia or the Joint Lead Managers (as defined in "Subscription and
Sale") to subscribe or purchase, any of the Notes. The distribution of this Prospectus and the
offering of the Notes in certain jurisdictions may be restricted by law. Persons into whose
possession this Prospectus comes are required to inform themselves about and to observe any
such restrictions.
For a description of further restrictions on offers and sales of Notes and distribution of
this Prospectus, see "Subscription and Sale".
No person is authorised in connection with the offering of the Notes to give any
information or to make any representation regarding the Bank, The Republic of Tunisia or the
Notes not contained in this Prospectus and any information or representation not so contained
must not be relied upon as having been authorised by or on behalf of the Bank, The Republic
of Tunisia or the Joint Lead Managers. A potential investor should carefully evaluate the
information provided herein in light of the total mix of information available to it,
recognising that neither the Bank nor The Republic of Tunisia nor any other person can
provide any assurance as to the reliability of any information not contained in this document.
Neither the delivery of this Prospectus nor any sale made in connection herewith shall, under
any circumstances, create any implication that there has been no change in the affairs of The
Republic of Tunisia since the date hereof or the date upon which this Prospectus has been
most recently amended or supplemented or that there has been no adverse change in the
financial position of The Republic of Tunisia since the date hereof or the date upon which
this Prospectus has been most recently amended or supplemented or that the information
contained in it or any other information supplied in connection with the Notes is correct as of
any time subsequent to the date on which it is supplied or, if different, the date indicated in
the document containing the same.
To the fullest extent permitted by law, the Joint Lead Managers accept no
responsibility whatsoever for the contents of this Prospectus or for any other statement, made
or purported to be made by a Joint Lead Manager or on its behalf in connection with the
Bank, The Republic of Tunisia or the issue and offering of the Notes. Each Joint Lead
Manager accordingly disclaims all and any liability whether arising in tort or contract or
otherwise (save as referred to above) which it might otherwise have in respect of this
Prospectus or any such statement. The Fiscal Agent, the Registrar, the Paying Agent and the
Transfer Agents referred to herein make no representation regarding this Prospectus or the
Notes.
i


PRESENTATION OF FINANCIAL INFORMATION AND EXCHANGE RATES
All references in this document to "Tunisian dinars", "dinars", "millimes" or "TD"
are to the currency of The Republic of Tunisia, references to "U.S. dollars", "U.S.$", "USD",
and "$" are to the currency of the United States of America, references to "JPY" are to the
currency of Japan and references to "EUR" or "Euro" are to the currency introduced at the
start of the third stage of the European economic and monetary union pursuant to the Treaty
establishing the European Community, as amended. References in this document to the
"Government" are to the Government of The Republic of Tunisia.
For ease of presentation, certain financial information relating to The Republic of
Tunisia or the Bank included herein is presented in U.S. dollars. Except as otherwise stated
in this Prospectus, any amounts stated in U.S. dollars as of a stated date or for a stated period
were converted from dinars into U.S. dollars at the rate of exchange either prevailing on such
date or calculated at the average rate of exchange for such period, as the case may be.
However, these translations should not be construed as representations that the Tunisian dinar
amounts actually represent such U.S. dollar amounts or could be converted into U.S. dollars
at the rate indicated or any other rate.
The following table presents the average annual exchange rate of the dinar against
U.S. dollars in each of the years indicated.
Average Annual Exchange Rates(1)
2007
2008
2009
2010
2011
(TD per unit of currency unless otherwise indicated)
USD.............................
1.2799
1.2309
1.3494
1.4319
1.4079
JPY(2)...........................
10.8007
11.9204
14.4033
16.2407
17.5099
EUR.............................
1.7519
1.8051
1.8787
1.8972
1.9582
_______________
(1)
The annual average of the daily interbank rates, on the Tunisian interbank foreign exchange market as published by the Bank.
(2)
TD/1,000 yen.
On 11 April 2012, the closing U.S. dollar/Tunisian dinar rate of exchange as reported
by the Bank was TD1.5060 = U.S.$1.00, the closing Japanese yen/Tunisian dinar rate of
exchange as reported by the Bank was TD18.6418 = JPY1,000 and the closing Euro/Tunisian
dinar rate of exchange as reported by the Bank was TD1.9766 = EUR1.00.
Certain monetary amounts included in this Prospectus have been subject to rounding
adjustments. Accordingly, figures shown as totals in certain tables may not be an exact
arithmetic aggregation of the figures that precede them.
Statistical information reported herein has been derived from official publications of,
and information supplied by, a number of agencies of The Republic of Tunisia (including the
Bank). Unless otherwise stated, all annual information, including budget information, is
based on calendar years.
ii


JURISDICTION AND ENFORCEMENT
The Republic of Tunisia is a sovereign state, and the Bank is an instrumentality of the
state acting on its behalf for the purposes of issuing the Notes. As a result, it may be difficult
for investors to obtain or realise upon judgments against The Republic of Tunisia in the
English courts or the courts of any other country. In connection with the offering to which
this Prospectus relates, the Bank, acting on behalf of The Republic of Tunisia, has
irrevocably submitted to the non-exclusive jurisdiction of the courts of England for purposes
of any suit, action or proceeding arising out of or in connection with the Fiscal Agency
Agreement and/or the Notes and that accordingly any suit, action or proceedings arising out
of, or in connection therewith (together referred to as "Proceedings") may be brought in such
courts. The Bank, acting on behalf of The Republic of Tunisia, has also irrevocably waived
any objection which it may have to the laying of the venue of any such Proceedings in any
such courts and any claim that any such Proceedings have been brought in an inconvenient
forum.
In addition, to the extent that The Republic of Tunisia may, in any jurisdiction, claim
or acquire for itself or its assets immunity (sovereign or otherwise) from jurisdiction, suit,
execution, attachment (whether in aid of execution before judgment or otherwise) or other
legal process (whether through service or notice or otherwise), the Bank, acting on behalf of
The Republic of Tunisia, has irrevocably agreed for the benefit of the investors in the Notes
not to claim, and has irrevocably waived, such immunity, to the fullest extent permitted by
the laws of such jurisdiction. However, the waiver of immunity does not extend to any other
proceedings and excludes from its scope certain diplomatic, military and other Government
properties.
The submission to jurisdiction and the waivers described above are effective against
The Republic of Tunisia. If any Noteholder wishes to bring any Proceedings, it must
therefore bring such Proceedings directly against The Republic of Tunisia, rather than the
Bank. Such Proceedings may be brought against The Republic of Tunisia in the courts of
England and, to the extent described above, The Republic of Tunisia will not assert immunity
in any such Proceedings.
Tunisian law permits The Republic of Tunisia and public entities such as the Bank to
choose a law other than the Tunisian law to govern their commercial and private transactions
and also to submit to a jurisdiction other than the jurisdiction of the Tunisian courts, to settle
any dispute or to opt for arbitration. A Tunisian judge will therefore order the enforcement in
Tunisia of foreign judgments without reexamining the merits of a claim, except that
enforcement of foreign judgments may be denied if (i) the underlying claim is subject to the
exclusive jurisdiction of Tunisian courts, (ii) a prior Tunisian judgment has already been
rendered with regard to the relevant claim, (iii) the foreign judgment is contrary to principles
of Tunisian public policy, (iv) the foreign judgment to be enforced has been cancelled in the
jurisdiction where it has been rendered, or (v) the jurisdiction where the judgment has been
rendered does not apply reciprocity rules in its relationship with The Republic of Tunisia.
iii


FORWARD-LOOKING STATEMENTS
Some of the statements contained in this Prospectus constitute forward-looking
statements. Statements that are not historical facts are forward-looking statements. Forward-
looking statements generally can be identified by the use of forward-looking terminology
such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue" or
similar terminology. These statements are based on the Bank's and the Government's current
plans, objectives, assumptions, estimates and projections. Investors should therefore not
place undue reliance on those statements. Forward-looking statements speak only as of the
date that they are made and neither the Bank nor The Republic of Tunisia undertakes to
update any forward-looking statements in light of new information or future events.
Forward-looking statements involve inherent risks and uncertainties. The Issuer cautions that
a number of important factors could cause actual results to differ materially from those
contained in any forward-looking statement. In addition to the factors described in this
Prospectus, including those discussed under "Risk Factors", the following factors, among
others, could cause future results to differ materially from those expressed in any forward-
looking statements made in this Prospectus:
· External factors, such as:
- changes in international commodity prices or prevailing interest rates, which
could adversely affect The Republic of Tunisia's balance of payments and
budget deficit;
- a recession or low economic growth in Tunisia's trading partners, in particular
a further economic slowdown in the European Union, which accounted for an
estimated 65.6% of Tunisian exports in 2011; or
- changes in the level of support by The Republic of Tunisia's multilateral and
bilateral creditors or changes in the terms on which such creditors provide
financial assistance to The Republic of Tunisia or any of its agencies or fund
new or existing projects.
· Internal factors, such as:
- a decline in foreign direct investment, increases in domestic inflation,
exchange rate volatility or a significant increase in the level of domestic and
external debt, which could lead to lower economic growth or a decrease in the
Bank's and The Republic of Tunisia's foreign currency reserves; or
- continuing political and socio-economic unrest in Tunisia and a failure by the
new Government to successfully address the underlying causes of the 14
January 2011 Revolution (as defined below), such as high youth
unemployment, poverty among parts of the population as well as significant
existing regional disparities in wealth within Tunisia.
iv


TABLE OF CONTENTS
RISK FACTORS ....................................................................................................................... 1
THE OFFERING..................................................................................................................... 10
TERMS AND CONDITIONS OF THE NOTES .................................................................... 13
SUMMARY OF PROVISIONS RELATING TO THE NOTES
WHILE IN GLOBAL FORM.................................................................................................. 24
USE OF PROCEEDS .............................................................................................................. 26
THE REPUBLIC OF TUNISIA .............................................................................................. 27
THE TUNISIAN ECONOMY ................................................................................................ 33
FOREIGN TRADE AND BALANCE OF PAYMENTS ........................................................ 57
PUBLIC FINANCE................................................................................................................. 67
PUBLIC DEBT ....................................................................................................................... 73
THE BANK AND THE BANKING SYSTEM....................................................................... 86
TAXATION ........................................................................................................................... 104
SUBSCRIPTION AND SALE .............................................................................................. 106
GENERAL INFORMATION ................................................................................................ 108


RISK FACTORS
An investment in the Notes involves risks. Accordingly, prospective investors should
carefully consider, amongst other things, the risks described below, as well as the detailed
information set out elsewhere in this Prospectus, and reach their own views before making an
investment decision. The risks and uncertainties described below are not the only risks and
uncertainties related to The Republic of Tunisia and the Notes. Additional risks and
uncertainties not presently known, or currently believed to be immaterial, could also impair
the ability to make payments on the Notes. If any of the following risks actually materialise,
the financial condition and prospects of The Republic of Tunisia could be materially
adversely affected. If that were to happen, the trading price of the Notes could decline and
The Republic of Tunisia may be unable to make payments due on the Notes, and investors
may lose all or part of their investment.
Risks relating to Investments in Emerging Markets
Investing in securities involving emerging markets generally involves a higher degree of
risk than more developed markets
Generally, investment in emerging markets is only suitable for sophisticated investors
who fully appreciate the significance of the risks involved in, and are familiar with, investing
in emerging markets. Investors are urged to consult their own legal and financial advisers
before making an investment. Such risks include, but are not limited to, potentially higher
volatility and more limited liquidity in respect of the Notes, a narrow export base, a less
diversified economy, infrastructure challenges that may limit the prospects for economic
growth, significant socio-economic challenges, greater political risk and a generally higher
likelihood of significant changes in the political and economic environment. Emerging
markets can also experience significant governance challenges, such as more instances of
corruption and misuse of public funds than more mature markets, which could affect the
ability of governments and their instrumentalities, such as The Republic of Tunisia, to meet
their obligations vis-à-vis investors.
Political instability in the Middle East and Northern Africa has generally increased
since the terrorist attacks of 11 September 2001, the U.S. intervention in Iraq and recent
developments in Iran's nuclear programme. In addition, some Middle Eastern and North
African countries have experienced in the recent past or are currently experiencing political,
social and economic instability, extremism, terrorism, armed conflicts and war.
Any of these factors, as well as volatility in the markets for securities similar to the
Notes, may adversely affect the value or liquidity of the Notes. Investors should also note
that emerging markets can also be subject to rapid change.
Risks relating to The Republic of Tunisia
Tunisia has faced significant political unrest since December 2010
Tunisia experienced an intensive campaign of civil resistance in December 2010. The
demonstrations were precipitated by high unemployment, corruption, a lack of freedom of
speech and other political freedoms and deteriorating living conditions and led, following
several weeks of street protests, to the ousting of President Zine El Abidine Ben Ali on 14
January 2011, when he officially resigned after fleeing to Saudi Arabia, ending 23 years in
power (the "14 January 2011 Revolution").
1


Despite successful elections being held on 23 October 2011, which saw the moderate
Islamic party Ennahda win 89 of the 217 seats in the National Constituent Assembly, the new
Government continues to face significant socio-economic and political challenges as well as
risk a higher degree of social instability and insecurity that often accompanies transitions to
democracy. These and other incidents of social and political unrest and violence in Tunisia
and the region have had a significant adverse effect on the Tunisian economy. Political unrest
and, in some cases, violence have spread throughout the Middle East and North Africa since
the 14 January 2011 Revolution and there can be no assurance that further incidents of
political instability, protests or violence (including terrorist attacks) will not directly or
indirectly affect Tunisia and its economy, which depends to a significant extent on the
tourism industry.
These and other incidents of social and political unrest and violence in Tunisia and the
region have had a significant adverse effect on the Tunisian economy.
The Tunisian economy has faced significant challenges in 2011, which has put increasing
pressure on Tunisia's public finances and has led to rising current account deficits and
Government budget deficits
14 January 2011 Revolution
While the 14 January 2011 Revolution may offer improved prospects for medium-
and long-term growth as a result of improved governance, it has had material negative short-
term macro-economic consequences for the Tunisian economy. Besides significant damage to
property (estimated by the Government at 4% of 2011 GDP), the Tunisian economy, at the
domestic level, has had to grapple with growing insecurity, social tensions and, over the
course of 2011, significant decreases in both tourism revenue and foreign direct investment,
each of which are estimated to have declined by around a third compared to 2010. The
relative increase in country risk in 2011 also had a negative impact on the ability to obtain
funding for projects and companies in Tunisia from international lenders.
In 2011, 182 foreign companies left Tunisia, and only 148 foreign firms newly
entered the country. Tunisia will therefore need to attract new investors and reassure them
over security concerns in order to attract more foreign direct investment in 2012 and beyond.
This will be crucial for Tunisia to be able to finance its growing current account deficit of
7.4% in 2011 (up from 4.8% at the end of 2010).
Commodity price increases and the Libyan crisis, whose impact on foreign trade is
estimated by the Government at 6% of Tunisian exports in 2011 (in addition to the decline in
remittances and declining foreign direct investment from Libya), were additional handicaps
for the Tunisian economy in 2011.
Production in the mining sector declined by 55.3% in 2011, and the Tunisian Ministry
of Finance estimates that the 14 January 2011 Revolution has caused a shortfall in revenue to
the Government of TD 3.0 billion. Tunisia's regular exports of textiles, mechanical and
electrical goods have also seen marked declines. A decline in industrial production of 7.2%
in 2011 compared to 2010 combined with a decline in domestic demand resulted in a 3.3%
decline in GDP in the first quarter of 2011 and a 0.5% decline in GDP in the second quarter
of 2011. Overall, the Tunisian economy is estimated to have shrunk by 1.8% in 2011. Partly
due the lingering effects of the factors described above, the Government has recently cut its
forecast for real GDP growth in 2012 by one percentage point, to 3.5%. This revised GDP
forecast was one of the key underlying assumptions on which the Government's budget for
2


2012 is based. However, any of the factors described above as well as additional risks and
uncertainties, including continuing political and socio-economic unrest or a further economic
slowdown in the European Union ("EU") (which accounted for an estimated 65.6% of
Tunisian exports in 2011), could cause actual GDP growth in 2012 to be significantly lower
than currently forecast by the Government.
Oil price vulnerability
In addition, the 2012 budget is based on the assumption that global oil prices will
average U.S.$100 per barrel of Brent crude oil in 2012 compared to actual average oil prices
of around U.S.$118 per barrel of Brent crude oil during the first quarter of 2012. With
elevated average prices, the new interim Government has maintained high subsidies on oil
products, resulting in a 64.5% increase in subsidies as of the end of 2011, which accounted
for approximately 4.5% of GDP. Higher-than-expected international oil prices represent a
significant risk of a further increase in the budget deficit in 2012, as every additional U.S.$10
per barrel is estimated to generate approximate net additional expenses of TD 280 million for
the budget.
Proposed increases in public spending
As a result of these and other factors and given a proposed increase in spending on
infrastructure, wages for civil servants, welfare and pensions in the 2012 budget and the
preservation of high levels of subsidies on food products, the Government budget deficit may
significantly increase above the 6.6% of GDP currently forecast in the 2012 budget
(compared to an estimated 3.7% for 2011 and 1.1% for 2010).
Other
Further factors that may limit Tunisia's future economic growth include financing
constraints that limit budgetary capacity, a lack of progress in improving public financial
management and the quality of spending, and ambitious infrastructure programmes that may
not yield expected economic benefits if complementary policies such as improvements in the
business climate and governance fail to materialise.
Should the Tunisian economy fail to overcome these challenges and to achieve
sustained economic growth, this may put pressure on Tunisia's foreign currency reserves.
Tunisia's banking sector has experienced challenges during recent years, remains
vulnerable to economic conditions and may require further support
The banking sector in Tunisia has historically experienced relatively high levels of
non-performing loans ("NPLs"). The Bank estimates the current level of NPLs across the
banking sector at approximately 13%, with significantly higher levels experienced during
prior years. In addition, the provisioning level by Tunisian banks stood at 57.9% as at 31
December 2011, below the 70% level targeted by the Bank.
Tunisia's banking sector was also negatively affected by the 14 January 2011
Revolution, as Tunisian banks faced a significant strain on liquidity throughout 2011,
particularly as a result of significant deposit withdrawals (approximately TD 700 million in
the first three months of the year).
The Bank provided support to the banking sector in a number of ways during 2011,
3


such as lowering its mandatory reserve requirements from 12% to 2%, reducing its key rate
from 4.5% to 3.5% and increasing both the amounts and maturities of discretionary monetary
operations in 2011. See "The Bank and The Banking System -- Discretionary Monetary
Operations". The country's foreign currency reserves also fell significantly during 2011, as a
result of a relatively high and increasing trade deficit and the repayment of significant
external debt in 2011, from U.S.$9.1 billion as at 31 December 2010 to U.S.$7.1 billion as at
31 December 2011.
Tunisian banks currently follow the Basel I regime, and a gradual evolution towards
compliance with Basel II is still in process. Full compliance with the Basel II regime will
require significant investment by the banking sector and is unlikely to be achieved in the
short term.
As a result of the foregoing, there can be no assurance that the Tunisian banking
sector will not need further support during 2012 and thereafter. Assistance may be required to
be provided in a number of different ways, including, in more pronounced cases, the making
of capital injections into banks which require additional equity. Additional capital may be
provided by the shareholders of the relevant bank(s) and/or the Government in more severe
cases. The Government may, as a shareholder, also be required to contribute to any such
capital injection for any of the banks in which it holds shares - there are currently five state-
owned banks in the Tunisian banking sector, which controlled approximately 38% of total
bank assets as at 31 December 2011.
The Tunisian economy may therefore be adversely affected by any deterioration in the
Tunisian banking sector and/or as a result of any further support required to be provided by
the Government to the sector.
Tunisia faces significant socio-economic challenges, including high youth unemployment
as well as significant regional disparities
Tunisia faces a number of significant socio-economic challenges, including high
levels of youth unemployment, particularly among youth with graduate degrees, significant
regional inequities and governance problems. These challenges, which triggered the
14 January 2011 Revolution, remain and will have to be addressed urgently by the interim
Government.
A number of government programmes implemented over the years have not yet
reversed the structural causes of unemployment, especially among university graduates.
While the overall unemployment rate has remained relatively steady above 14%,
unemployment for the educated youth has increased significantly over the last two decades
and reached an estimated 30.5% in 2011. The upward trend in the unemployment of
university graduates is the consequence of a growing young population, high throughput in
universities, mismatch in the demand and supply of skilled workers, and sometimes
insufficient quality of training received by many graduates in some areas. In 2011, the
average national unemployment rate rose to an estimated 18.9% from an estimated 13% at
the end of 2010. The 14 January 2011 Revolution as well as the crisis in Libya, which led to
the return of Tunisian migrant workers from Libya, have further aggravated the problem of
unemployment.
In addition, regional and socio-economic disparities remain significant in Tunisia.
The issue of regional disparities was at the core of the social unrest in the cities of Sidi
Bouzid, Kasserine and Thala in the Mid-East region. As a whole, the East Coast of the
4