– The loan length is 48 months, subject to the Executive Council of the IMF’s approval, which is expected to debate the proposal in December. Following a discussion with Crystalina Gorgieva, director of the fund, outside of the fall meetings in Washington, the agreement was achieved at the expert level.
The loan’s objectives include strengthening social safety nets, promoting tax equity, and restoring macroeconomic stability.
– Due to its severe financial problems, which raises concerns that it may not be able to pay its debts, Tunisia urgently needs international assistance. The economic and financial crisis in Tunisia caused a lack of food and fuel, especially after the price jump after the Russian -Ukrainian crisis.
A deal with the IMF is necessary to pave the door for bilateral funding from donor nations which wanted to reassure Tunisia through an IMF programme that it could adopt changes that would increase its financing to a more sustainable level.
The International Monetary Fund stated that the programme agreed upon with Tunisia will include changes to broaden the tax base, increase the reach of the social safety network to assist the most vulnerable citizens facing high prices, and enact legislation that governs the reform of state-owned enterprises.
Specifics of the $1.9 billion loan agreement between Tunisia and the IMF
About Author
