Six weeks without the Government and Tunisia under the exceptional situation, since the announcement of Kais Said’s decisions on July 25, domestic and external demands for the need to form a government whose basic project is to save the economy have been repeated.
Observers believe that the absence of a government in the current economic situation will have many repercussions, particularly at the level of talks with the International Monetary Fund, and the development of a supplementary financial law, especially the search for solutions to fill the trade deficit before the end of 2021.
Economist Ezzedine Saidan told JDD Tunisie on Wednesday (September 8th, 2021) that the economic, financial, social and political situation was at its worst before July 25, and talks with the INTERNATIONAL Monetary Fund (IMF) were completely stalled, confirming that all indicators were in the “red line.”
Saidan added that the country was in complete paralysis in all respects, and then the actions of “25 Goylians” were an opportunity to save the economic situation, but these measures were not translated into projects mainly, the most important of which is a political reform project, an economic rescue project, a project to save public finances.
He explained that, referring to the figures, we note that Tunisia needs almost 18 billion dinars before the end of 2021, to cope with all its expenditures this year, but based on tax revenues Tunisia is able to secure only 8 billion dinars, asking “where will we get that amount, knowing that talks with the IMF are completely stalled.”
Tunisia is required to pay off debts of 4.5 billion euros ($5.4 billion) in 2021. It also needs 19 billion dinars (about $6.78 billion) to meet budget terms for 2021.
In 2020, Tunisia’s public debt reached a record $35.97 billion (about 98 billion dinars), or 87 percent of GDP.
Saidan said Tunisia has been under exceptional status since July 25, and the affiliation rating has fallen to a very bad level, thus becoming almost impossible for Tunisia to enter the international financial markets.
Fitch Ratings said Kais Saied’s decisions could disrupt negotiations with the International Monetary Fund (IMF) on the economic reform program, which means increased pressure on funding.
The agency also noted that political turmoil and tensions in Tunisia may negatively affect the willingness of its foreign partners to support it economically, especially since the prospects for reforms, which can reduce budget deficits, contribute to debt stability and reduce external liquidity pressures, were naturally narrow before the crisis.
The solution in government?
Economist Ezzedine Saidan said the solution is to develop a supplementary financial law, which will enable answers on how to end 2021 from the economic side, and where we will bring the financial resources necessary to meet state expenditures this year.
Resuming talks with the IMF, developing a supplementary financial law, a financial law for 2022, initiating an economic reform and public finance reform program that requires a government whose only basic project is to save the economy and public finances, he estimated.
Our speaker stressed that Tunisia is not isolated from the world, as it is in partnership with foreign countries in trade, investment, finance and in several areas, which illustrates the visits and demands of these countries to speed up the development of a government.
G7 ambassadors to Tunisia have called on President Qais Said to appoint a prime minister and return to constitutional order as soon as possible.
Rifi-JDD