Tunisia: Talks with IMF for new financing program start Monday

Tunisia is starting this Monday formal talks with the International Monetary Fund (IMF) for a credit line to be used to prop up the sluggish economy of the North African country, a source at the Central Bank of Tunisia (CBT) told state-run news agency TAP.

The team of the Washington-based international financial institution is expected in capital Tunis this Monday.

The two sides will establish the amount of the credit facility during the talks. The North African country last month made reference to a $4 billion loan from the IMF.

The country has seen its economy badly hit by the pandemic. The national 2022-2023 budget has deficit of over $2 billion.

The talks are set to take place on the backdrop of a political crisis. The administration of President Kais Saied has submitted a set of reforms, as requested by the IMF. The reforms are rejected by the country’s most powerful labor union, UGTT.

The union claims the reforms are very painful and will exacerbate furthermore the harsh economic conditions. The UGTT has accused the IMF of willing to rule Tunisia.