Is Tunisia getting closer to getting funding from the IMF?
The International Monetary Fund (IMF) has revealed that Tunisia is close to obtaining funding worth 1.9 billion dollars. This will put an end to the debate over the tense relations between the IMF and the authorities and will open the way to improving the economic situation and restoring the confidence of foreign investors and donor institutions in the Tunisian economy.
“We are close to reaching a consensus after making progress in terms of ensuring sufficient funding for the program,” said Jihad Azour, the IMF’s director for the Middle East, North Africa, and Central Asia, in an interview published on the Al-Sharq channel website on Wednesday.
“We have worked with the Tunisian government and Tunisia’s allies to mobilize additional funding guarantees, and the authorities have made progress on what we call previous measures,” he said.
It is not known that there has been progress between Tunisia and the IMF in terms of conditions for funding, especially about lifting the subsidies, just a few weeks after Tunisian President Kais Saied confirmed that he refuses to submit to dictates, calling on Tunisians to rely on themselves.
Tunisia, which is suffering its worst-ever financial crisis and credit rating agencies say it is threatening to default on its debt, reached an expert-level agreement with the IMF last year on a $1.9 billion loan.
“However, a final deal stalled several months ago amid international calls for Tunisia to begin immediate reforms including reducing food and energy subsidies, restructuring public companies, and lowering the public wage bill.”
Azour said there are still some issues that need to be resolved, but no details were released. He said he expects the issue of lifting subsidies, wages, and the sale of public institutions to be the most prominent one.
The IMF official also did not hide concerns about the repercussions of some of the measures and how to properly take them.. “We want to make sure social spending is more targeted, and we think energy subsidy reform will make it happen.”
Tunisian Minister of Economy and Planning Samir Said launched an effort last month in Washington to defend Tunisia’s chances of securing funding from the International Monetary Fund following the spring meetings.
“Italy is playing an important role in pressuring Western powers and the IMF to provide the needed funding, warning of the fall of its neighbor into the hands of Russia and China and pointing out the consequences of the collapse of Tunisia’s economy on its security, especially about irregular migration.”
“Italian Foreign Minister Antonio Taiani has repeatedly called on the EU to financially support Tunisia to overcome its crisis.”
The sharp tone of some Western powers, especially the United States, towards Tunisia has recently been on the decline.
The U.S. Congress relieved the pressure on the Tunisian government by saying at a hearing last month that Tunisia must be given economic support to prevent its collapse.
