IMF says it will start talks with Tunisia over loan program
By Tarek Amara
TUNIS (Reuters) – The Worldwide Financial Fund mentioned on Wednesday it welcomed an financial reform program introduced by the Tunisian authorities this month and is able to begin negotiations in coming weeks over a mortgage program.
Tunisia, which is dealing with a monetary disaster, is looking for to achieve a deal on a $4 billion IMF mortgage in return for an unpopular reform bundle to shore up its struggling public funds.
The IMF assertion comes after Jihad Azour, director of the Fund’s Center East and Central Asia Division, met President Kais Saied and Prime Minister Najla Bouden.
“The nationwide reform program introduced by the federal government achieves a number of advantages, corresponding to rising credibility, making the probabilities of success larger than prior to now,” Azour mentioned within the assertion.
“After months of technical discussions with Tunisian authorities, the IMF is able to begin negotiations on this system within the coming weeks,” he added.
Tunisia’s reform plan contains freezing wages, stopping recruitment within the public sector, slicing vitality and meals subsidies, and promoting some shares in state corporations.
However the highly effective UGTT Labor Union has strongly rejected the proposed program and launched a nationwide strike final week in public corporations.
The union, which has about 1 million members, mentioned it plans to launch a nationwide strike within the public service as nicely.
Final week’s strike compounded the challenges dealing with president Saied, who has tightened his grip on energy since July 2021 when he froze parliament and sacked the cupboard – strikes his opponents referred to as a coup towards Tunisia’s younger democracy.
Defying opponents, Saied is now looking for to overtake the structure so the president wields extra energy.
(Reporting by Tarek Amara; modifying by Richard Pullin)
