Jihad Azour, director of the Middle East and Central Asia department of the International Monetary Fund (IMF), affirmed that the financial institution is ready to start negotiations with Tunisia on the implementation of a program, during the next weeks.
The IMF reported the director’s comments in a statement:
“The repercussions of the war in Ukraine are aggravating the already deep imbalances plaguing the Tunisian economy and putting the population to the test. The seriousness of the economic situation thus increases the need to implement ambitious reforms without delay. We welcome the government’s recent publication of its reform plan and urge the various stakeholders to join forces to implement it. Tunisia must urgently address the imbalances in its public finances by improving fiscal equity, limiting the growth of the large civil service wage bill, replacing generalized subsidies with transfers to the poorest, strengthening its social safety net and reforming public enterprises that are losing money, in order to quickly resolve the deep imbalances from which its economy suffers and to ensure macroeconomic stability. In addition, strengthening competition and opening the economy to private sector investment would allow Tunisia to take full advantage of its strengths to foster the inclusive and highly job-creating economic growth that it so badly needs.
A home-grown reform agenda, as championed by the government, is more credible and more likely to generate broad support, and therefore has a better chance of success than in the past.
It is essential that the government describe in more detail each of the measures of its reform plan, and that it discusses them with all the stakeholders, so that they make common cause and participate in its implementation.
Today, the IMF stands alongside the Tunisian authorities to help them initiate economic and social reforms in the service of the population. After several months of technical discussions, we are ready to begin negotiations over the next few weeks on the establishment of a program”.
We recall that the director of the IMF department, went to Tunis on June 20 and 21 during his trip to North Africa. He met with the President of the Republic Kaïs Saïed, the Head of Government, Najla Bouden, as well as representatives of civil society.
