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