Tunisia is negotiating with the IMF on a “fair economic reform” program

Tunisia Works with IMF on Economic Reform Program to Support Vulnerable Groups

The Governor of the Central Bank of Tunisia, Marwan El-Abbassi, has announced that Tunisia is collaborating with the International Monetary Fund (IMF) on an economic reform program that prioritizes the needs of the most vulnerable groups in the country. El-Abbassi’s statements confirm a recent Reuters report, which quoted a senior government official stating that Tunisia is preparing an alternative proposal for the IMF that takes into account the concerns of these vulnerable groups. This comes after President Kais Saied rejected what he described as the fund’s dictates.

Talks on a $1.9 billion loan between Tunisia and the IMF have been at a standstill since October. The two parties had reached a staff-level agreement, but Saied firmly opposed the idea of cutting subsidies and selling off state-owned companies. In a meeting with the director of the fund in Paris, Saied expressed his concerns that the terms of the financial support provided by the IMF could potentially ignite social unrest in the country. He emphasized that any reduction in subsidies, particularly for energy and food, could have severe consequences, citing the violent protests that occurred in Tunisia in 1983 when the government raised the price of bread.

The United States Secretary of State, Anthony Blinken, has urged Tunisia to submit a revised plan to the IMF. Additionally, the European Union has announced its intention to offer 900 million euros in loans, conditional on the implementation of the IMF program. It is also expected that Gulf countries will provide support if an agreement with the fund is reached.

Without a financial rescue plan, Tunisia is facing a comprehensive balance of payments crisis. While most of Tunisia’s debt is domestic, foreign loan payments are due later this year. Credit rating agencies have warned that Tunisia could potentially default if a solution is not found.

The collaboration between Tunisia and the IMF on an economic reform program that considers the needs of vulnerable groups is a crucial step towards stabilizing the country’s economy and avoiding a potential crisis. The government’s efforts to address the concerns of these groups, along with the support from international partners, will be instrumental in ensuring Tunisia’s economic recovery and social stability.

What role does international support, such as the European Union’s pledge and potential Gulf countries’ assistance, play in stabilizing Tunisia’s economy and preventing a potential crisis

Tunisia Collaborates with IMF to Support Vulnerable Groups Amid Economic Reform Efforts

The Central Bank of Tunisia, under the leadership of Governor Marwan El-Abbassi, has announced a collaboration with the International Monetary Fund (IMF) to develop an economic reform program focused on addressing the needs of the most vulnerable sectors of society. This comes in response to concerns raised by President Kais Saied regarding the IMF’s initial proposals, which he deemed too harsh for a country already grappling with social unrest.

The discussions between Tunisia and the IMF regarding a $1.9 billion loan have been at a standstill since October due to disagreements over subsidy cuts and the potential privatization of state-owned companies. President Saied expressed his apprehension over these measures, highlighting the possibility of social unrest and drawing parallels to the violent protests that erupted in 1983 when bread prices were increased.

However, recent developments indicate a renewed effort to find common ground between Tunisia and the IMF. A Reuters report revealed that Tunisia is preparing an alternative proposal that takes into account the concerns of vulnerable groups, setting the stage for further discussions.

Influential figures such as United States Secretary of State Anthony Blinken and the European Union have urged Tunisia to present a revised plan to the IMF. The European Union has even pledged to offer 900 million euros in loans, contingent upon the successful implementation of the IMF program. Moreover, Gulf countries are expected to provide support if an agreement is reached with the IMF.

This collaboration with the IMF is of vital importance to Tunisia, which is currently grappling with a comprehensive balance of payments crisis. While the country’s debt is predominantly domestic, foreign loan payments are looming, raising the specter of potential default if a resolution is not found.

The efforts by the Tunisian government to prioritize the needs of vulnerable groups through economic reforms, coupled with international support, are critical in stabilizing the country’s economy and averting a potential crisis. The road ahead may still be challenging, but this collaborative approach is a promising step towards Tunisia’s economic recovery and social stability.