Tunisia warns IMF against red lines as talks for loan continue

Tunisia’s Foreign Minister Nabil Ammar indicated Thursday that the North African country is still in talks with the International Monetary Fund (IMF) for a $1.9-bllion loan, but warned there are red lines not to cross.

“Tunisia will not break off negotiations with the IMF and its partners, but there is no question of crossing red lines, particularly those linked to the protection of the vulnerable classes and the country’s stability,” he told local media Mozaique FM.

Tunisia is facing an economic downturn owing to the impact of the pandemic. The country is currently in talks with the International Monetary Fund (IMF) for a $1.9-billion loan to supplement the national budget facing a deficit of $2 billion.

The loan is attached to a string of conditions and reforms rejected by the country’s powerful labor union, UGTT. Ammar’s remarks echoed those of Social Affairs Minister Malek Ezzahi, earlier this month. Ezzahi indicated that the reforms will not be implemented at the detriment of underprivileged segments of the population.

Tunisia’s President Kais Saied last month indicated that his country will end talks with the IMF and the World Bank that he accused of hijacking the sovereignty of countries.