And though the risk premium, measured by the Emerging Markets Bond Index, receded mildly since the beginning of the year, it is currently by around 160 basis points higher than in mid-2011. As a result, at the end of January the dinar was around 5% weaker vis-à-vis the euro than at the end of the third quarter of 2011.
The long financial crisis has taken a heavy toll on the markets and the institutions. It has put monetary union itself to a severe test. The banks are suffering the heavy consequences of the double-dip recession and the sovereign debt crisis. They have met with serious funding difficulties, coped with the need for capital strengthening, and suffered a sharp drop in profitability.