IMF: Tunisia Urgently Needs Economic Reforms

International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Wednesday that Tunisia urgently needs targeted economic reforms to stabilize its economy and put public finances on a sustainable path.

Georgieva added the IMF had been engaged “quite extensively” with Tunisian authorities on a technical level, and looked forward to hearing their priorities for an eventual lending program with the fund.

Tunisia’s new government said this week that balancing public finances will be a priority, but it and President Kais Saied face a hard road to convince markets and foreign donors they are ready to hash out a rescue package.

Even before the pandemic Tunisia was struggling to bring its public debt and fiscal deficits onto a sustainable trajectory, and has since been hit hard by a lockdown and the collapse in tourism. By the summer it needed urgent help.

Then, talks with the International Monetary Fund (IMF) for a loan that could unlock bilateral aid from major donors were derailed when Saied suspended parliament, sacked the prime minister