US urges Tunisia to reach deal with IMF to avoid collapse

US Secretary of State Antony Blinken urged Tunisia to speed up efforts in order to reach a deal with the International Monetary Fund that would spare it economic collapse.

“The most critical thing they can do on the economic side is actually get an IMF agreement,” Blinken said at a senate hearing in a statement that echoes similar warnings by Western officials.

“We would strongly encourage them to do that because the economy risks falling off the deep end,” Blinken said.

Cash-strapped Tunisia has been struggling with dysfunctional government finances on the verge of bankruptcy leading to shortages of basic goods, including foodstuff such as coffee, butter and sugar.

Its negotiations with the IMF for a $2 billion loan are stalling due to fierce opposition by labor unions of the conditionalities involving structural adjustment that would put an end to subsidies.

EU foreign policy chief Joseph Borrel said Tunisia risks collapse “economically or socially” that could trigger a new flow of migrants to Europe.

President Kais Siaed is worsening Tunisia’s economic, political, and social outlook by pursuing a power grab policy that undermined all Tunisia’s democratic achievements post-2011.

Earlier this month, Fitch rating rated Tunisia ‘CCC+’, warning that “default is a real possibility.”

As the economic and financial outlook darkens, the Tunisian president seeks scapegoats sending scores of critics including Islamist and secular politicians to prison.

His diatribe against Sub-Saharans sent shockwaves across the continent as African countries ask their nationals to leave Tunisia, while the World Bank said it will pause its partnership with Tunis.