The IMF supports the proposed reforms in Tunisia and is open to “starting negotiations”

June 23 (EUROPA PRESS) –

The International Monetary Fund (IMF) has expressed its support for the controversial program of economic reforms presented by the president of Tunisia, Kais Saied, who has been facing growing social pressure since he announced in July 2021 that he was arrogating all powers after dissolving the Government and suspend Parliament.

The IMF director for the Middle East and Central Asia, Jihad Azour, has indicated after a two-day visit to the African country that the reform program “has the benefits of greater ownership and greater credibility, which means a better chance of success than in the past”, before showing his willingness to “start negotiations” in the coming weeks.

“The ownership of the reforms matters a lot, with or without a program supported by the IMF. For this reason, we applaud the recent publication of the government’s reform program,” he said, before adding that “it is very important to better articulate the policies and specific reforms and discuss them with all the actors so that they unite around the government program and support this effort”.

“Therefore, a continued dialogue with the key players, together with extensive communication, should help increase the chances of success,” said Azour, who has warned of the impact of the war in Ukraine on the Tunisian economy.

Thus, he pointed out that “the repercussions of the war in Ukraine are deepening the already high economic imbalances in Tunisia and creating a harder situation for the population”, for which he has stressed that “the seriousness of the economic situation requires a rapid implementation of ambitious reforms”.

“Tunisia urgently needs to address its fiscal imbalances by improving tax equality, containing the large utility bill, replacing generalized subsidies with transfers to the poor, strengthening its social safety net, and reforming loss-making public companies,” he argued. .

Along these lines, he advocated “strengthening competitiveness” and “opening the economy to investment in the private sector”, while reiterating that “the IMF is on the side of the Tunisian authorities in their efforts to advance the reforms economic and social benefit of the population”.

Saied is facing growing criticism for the economic crisis and the exceptional measures adopted since May 2021, when he dissolved the Government and suspended Parliament –later dissolved– to assume all powers, a measure denounced by numerous parties, including the Islamist Ennahda.