It was expected that negotiations between Tunisia and the International Monetary Fund on granting a new loan of four billion dollars start today, Wednesday, September 1, 2021, but “no preparatory meeting has been held so far from the Tunisian side,” according to what was published by the “Africa Intelligence” website.
The recent political measures in Tunisia postponed negotiations with the International Monetary Fund to sign a new financial agreement worth $4 billion, and the dismissed Prime Minister Hichem Mechichi had started negotiations with the Fund last May to obtain a new loan according to a map of economic reforms.
While the Fitch Ratings Agency previously reported, “President Kais Saied’s decision to freeze the work of Parliament and dismiss the Prime Minister, may add further delays to the program of negotiations with the International Monetary Fund, which would alleviate the great financing pressures in the country.”
accumulated debts
We note that Tunisia’s budget for 2021 expects borrowing needs to reach $7.2 billion, of which about 5 billion are loans.
Tunisia is required to pay 4.5 billion euros ($5.4 billion) in debts during 2021. It also needs 19 billion dinars (about 6.78 billion dollars) to meet the terms of the 2021 budget, in light of a social and economic crisis with the decline of all indicators.
It should be noted that during the year 2020, the public debt in Tunisia reached a record level of 35.97 billion dollars (about 98 billion dinars), or 87 percent of the GDP.
Tunisia needs a reform program
Tunisia needs a program of reforms that can restore growth, improve the investment climate and enhance the competitiveness of the economy.”
This meeting, on Tuesday, August 31, 2021, was devoted to discussing the economic and social situation in Tunisia and the Bank’s related programs. Belhadj affirmed the Bank’s commitment to continue supporting and accompanying Tunisia at this stage and its willingness to open up to the Tunisian private sector, which remains the main engine of growth.
The President of the Republic, Kais Saied, in turn, met on Monday, August 30, 2021, with Farid Belhadj. and other international financial institutions.
Rifi-JDD
