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imageTUNIS: Tunisia plans to issue a Eurobond worth 1 billion euros in January as it seeks funding to cover its deficit, a government source said on Monday.

The issue was initially scheduled for April, but that was delayed after Tunisia secured a $500 million sovereign bond fully guaranteed by the United States, said the official.

"Tunisia will issue in January 2017 a delayed 1 billion euro Eurobond that was first planned earlier this year," he said, without giving further details.

Tunisia's economy has been hit by social unrest and militant attacks following the 2011 uprising that toppled former leader Zine El-Abidine Ben Ali. Investment has fallen and unemployment is high, especially among young people.

The government is facing further strikes over austerity measures included in the 2017 budget as it tries to cut public spending and rein in the deficit.

Tunisia recently cut its 2016 growth forecast to 1.5 percent this year, down from an expected 2.5 percent.

Copyright Reuters, 2016

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