Tunisia breaks ties with IMF amid dispute

Tunisia has taken the decision to sever all communication with the International Monetary Fund (IMF), following claims from President Kais Saied that the IMF is overstepping its role and interfering in the country’s economic sovereignty.

This move reflects rising tensions between the Tunisian Government and the global financial institution, which has been a key partner in providing financial assistance to Tunisia in recent years, particularly as the country was facing economic challenges.

The IMF has been involved in offering loans and advising Tunisia on economic reforms, particularly in the wake of the 2011 revolution that led to significant political and economic instability. However, President Saied’s Administration has grown increasingly resistant to some of the IMF’s conditions, which often include austerity measures such as subsidy cuts and tax reforms.

The Government’s reluctance to implement such measures, which are seen as harmful to the population, has led to a standoff, with the Government arguing that the IMF’s influence exacerbates Tunisia’s economic struggles, rather than alleviating them.

This decision to cut ties with the IMF comes at a time when Tunisia is facing a serious economic crisis, marked by high inflation, unemployment, and a rising public debt. The IMF had been working on a potential loan program for Tunisia, which many viewed as crucial to stabilizing the economy. However, with the breakdown in relations, it remains to be seen how Tunisia will navigate its economic challenges moving forward and whether it can find alternative solutions to avoid a potential financial collapse.