Tunisia: Kais Saied opposes agreement with IMF

Tunisia has been running for more than a year behind an IMF loan and its biggest partners, in particular the European Union, and the United States have been doing their utmost to get the loan, warning of the risks of the Tunisian economy collapsing, if ever. The IMF tied the loan to reforms that the authorities vowed to implement.

Talks between Tunisia and the Washington-based IFM has begun since last year for a $1.9-billion loan to be used to supplement a budget deficit put at $2 billion.

The talks recently slowed down amid political and socio-economic crisis within the country. UGTT, the country’s most powerful labor union rejected the talks and accused the government of bending to IFM strings of conditions including the removal of subsidies and the privatization of some state-run companies.

Theoretically, President Kaïs Saïed has already endorsed the government’s file submitted to the IMF, since he signed the finance laws of 2022 and 2023, which both include the deficit and underline the need to call on external credits.

However, kais Saied on Thursday expressed rejection of the reform plan imposed by the IMF, and of “anyone’s diktats”.

Kais Saied said the North African country will not apply for the IMF loan and accused foreign countries for robbing Tunisia.
Speaking at the 23rd anniversary of the death of Tunisia’s founding father Habib Bourguiba, Saied argued that the country can fend for itself without the IMF.
“The world and financial entities such as the International Monetary Fund (IMF) must understand that the human being is not just a number… We demand respect for the will of the people,” he said.

“We are capable of overcoming all crises,” he added. “And besides, why is the foreigner refusing to give us back our money?” he asked.

Tunisian authorities have demanded the return of around $22 million in foreign banks – money embezzled by some Tunisians most of whom from the regime of late leader Ben Ali ousted in 2011 in a revolution.