–Jihad Azour, director of the Middle East and Central Asia department of the International Monetary Fund (IMF), went to Tunis on June 20 and 21 during his trip to North Africa.
During his visit, Azour Jihad discussed with President Kais Saied the government’s economic reform program. He also met the Head of Government, Ms. Najla Bouden, as well as representatives of civil society.
“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,” said Azour Jihad.
“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, by strengthening its social safety net and reforming public enterprises that are losing money, in order to rapidly correct the deep imbalances plaguing its economy 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 assets to promote the inclusive and highly job-creating economic growth that it so badly needs” .
“The IMF stands alongside the Tunisian authorities”
“A nationally inspired 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. Commitment to reforms matters whether or not they receive IMF support. We therefore welcome the government’s recent publication of its reform plan. 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. In this way, by ensuring an uninterrupted dialogue with its main interlocutors as well as wider communication, the government will increase the chances of success of its policies”.
“The IMF is and will remain a strong partner for Tunisia. In 2020, the IMF lent a hand to Tunisia in the grip of the COVID-19 pandemic, in a particularly difficult international context. 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 start negotiations over the next few weeks on the establishment of a program.”
(Source: FMI)
–
