Tunisian bondholders remain confident in the country’s ability to meet its debt-repayment obligations over the next year despite uncertainty surrounding an IMF bailout. EUR-denominated bonds due next month are trading near par value, recovering from a significant drop in April following President Saied’s rejection of IMF-mandated spending cuts and reforms for a USD 1.9 bln funding package. USD notes due in January next year have risen 4.8 cents on the dollar this year. Tunisia has been able to cover about four months of import needs with its FX reserves, and a rebound in tourism and remittances from Tunisian expatriates has helped boost inflows.